Gold prices dropped nearly two per cent in the global market on Monday after US President Donald Trump said the precious metal will not attract 39 per cent tariff as feared earlier.
In a social media post, Trump said: “Gold will not be tariffed”. This dragged gold below $3,400 an ounce on COMEX, with prices dropping to as low as $3,393.70 an ounce before touching $3,400 again.
Last week, gold touched a new high of $3,545 an ounce after the US Customs and Border Protection notified that gold bars will fall under code 7108.13.5500, which is subject to a 39 per cent tariff.
During the weekend, Whitehouse clarified that the US administration would clear the air on the tariff on gold, leading to the precious metal paring its gains.
In London, spot gold prices dropped to $3, 341 an ounce before rebounding to near $3,350. Gold looked up on Tuesday as investors shifted their focus to the US consumer inflation report.
Average tariff in US
According to David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, the US Fed could indulge in a pre-emptive rate cut that could stoke inflation. Investors need to diversity into alternative and global assets such as gold, he said.
He said the average tariff rate for US imports could peak to 14.4 per cent compared with 2.4 per cent in 2024.
In India, the industry is looking for direction regarding the latest decision of Washington. A few say this could cover jewellery exports, though others say it may not have any impact on the 50 per cent tariff imposed on Indian imports into the US.
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Published on August 12, 2025
