Trump promised to exempt gold from tariffs, and the gold and silver markets collectively breathed a sigh of relief

The lifting of the gold tariff controversy

On August 11, US President Trump made it clear on social media: "There will be no tariffs on gold!"
Previously, the U.S. Customs and Border Protection Agency published a ruling on its website, suggesting that it might impose import tariffs targeting specific countries on the most widely traded gold bars in the United States, causing volatility in the global precious metals market for several days.
White House officials later revealed that the government was preparing an executive order to "clarify the misinformation about tariffs on gold bars and other special products." Trump's statement quickly ended the concerns.

Direct benefits for the Swiss gold industry

Eliminating the tariff risk is particularly crucial for Switzerland. Switzerland is a major hub for gold refining and transshipment, and if the United States imposes tariffs on gold, it will have a huge impact on its export chain.
Independent gold market analyst Ross Norman said the decision would provide "huge relief to the gold and silver markets" and that the potential negative impact had previously been "immeasurable."

Immediate market reaction

U.S. gold futures fell 2.4% to $3,407 an ounce following the news, while spot gold dropped 1.2% to $3,357, bringing premiums back closer to the global benchmark.
Gold mining companies' shares also came under pressure: Barrick Mining (ABX.TO) fell 2.8%, while Newmont (NEM.N) dipped slightly to $68.87. Analysts believe this is more a sentiment correction after the dissipation of tariff fears than a deterioration in fundamentals.

Gold price chart from 1980 to 2024

The next chapter in gold investing

The tariff-free gold policy provides short-term stability for the precious metals market, potentially easing risk aversion. Gold prices are likely to remain range-bound in the short term, with range-bound fluctuations potentially presenting short-term opportunities. In the medium term, fundamental support, such as geopolitical risks and inflation expectations, remains, but caution should be exercised against potential pullbacks after a surge. Investors should moderately reduce their long positions, closely monitor the US dollar and global central bank gold purchasing trends, and manage their capital and risks amidst volatility.

Although market sentiment has eased, investment logic needs to return to fundamentals.

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Further reading

• Former Standard Chartered executive: With yield-based stablecoins banned, tokenized assets may become the new favorite

• China and the United States extend the 90-day tariff truce, giving trade a break during the year-end holiday