Gold Prices Steady as Traders Await Clarity on Trump’s No-Tariff Pledge

Gold prices held their ground on Tuesday after U.S. President Donald Trump assured that bullion imports would not face U.S. tariffs — a statement that calmed some market jitters but left traders seeking formal confirmation. The lack of clarity comes after a surprise federal ruling last week that sent shockwaves through the precious metals market.

Market Reaction
Spot gold was trading near $3,345 an ounce in early London trading, steady after a 1.6% drop in the previous session. On Monday, Trump posted on social media: “Gold will not be Tariffed!” The announcement triggered an immediate pullback in prices, following a sharp run-up late last week.

Gold futures in New York also edged lower after tumbling 2.5% on Monday. The decline came on the heels of Friday’s rally, when a surprise ruling from U.S. Customs and Border Protection stated bullion imports would be subject to duties. That decision drove New York Comex futures to trade more than $100 an ounce above London spot prices — the largest spread in years. The gap has since narrowed to about $50.

Why It Matters
Washington’s stance on gold tariffs has significant implications for global bullion flows and the smooth operation of U.S. futures contracts. In April, the administration exempted gold from duties, but until there is an official and enduring policy statement, traders expect continued volatility.

So far in 2025, gold has gained over 25%, with most of those advances coming in the year’s first four months. Prices have been fueled by geopolitical uncertainty, global trade tensions, and robust central bank buying, all of which have increased demand for safe-haven assets.

Broader Market Context
Elsewhere in markets, the U.S. dollar held its recent gains ahead of a key inflation report due later on Tuesday, which could influence the Federal Reserve’s interest rate outlook. Higher rates typically weigh on gold, which offers no yield, while a stronger dollar makes it more expensive for overseas buyers.

Traders were also digesting Trump’s separate decision to extend a tariff truce with China for another 90 days, pushing the deadline into early November. The move could reduce fears of a renewed trade war between the world’s two largest economies — a development that may dampen safe-haven demand for gold.

Latest Prices (as of 8:15 a.m. London time)

• Spot gold: +0.1% at $3,345.12/oz
• Bloomberg Dollar Spot Index: -0.1% after Monday’s 0.3% gain
• Silver: higher
• Palladium: flat
• Platinum: lower