Trump: "Gold is tariff-free"... International gold prices plunge 2.5%

Korea Economic Daily

Summary

President Donald Trump announced a tariff-free policy on gold, leading to a 2.5% plunge in international gold prices.
Gold futures, which had hit a record high due to speculation about U.S. Customs and Border Protection tariffs, reversed gains following President Trump's announcement.
While the market expects that 1-kg gold bars will be excluded from tariffs, expectations for a benchmark interest rate cut in the U.S. could positively affect gold prices.

U.S. President Donald Trump announced that tariffs would not be imposed on gold, causing international gold prices to plummet.

On the 12th at the New York Mercantile Exchange, near-month gold futures fell to $3,393 per troy ounce. The previous day's closing price ($3,404.7) dropped 2.5% from the previous trading day.

On the 8th, after reports that the U.S. Customs and Border Protection (CBP) classified 1-kg gold bars and 100-ounce gold bars as subject to tariffs, gold futures hit an all-time high ($3,534.10). However, as the White House denied the tariff speculation and President Trump reaffirmed his tariff-free policy that day, the gains were reversed.

President Trump posted on the social media platform Truth Social, saying, "Tariffs will not be imposed on gold." He did not mention the specific background or the direction of future policy.

The 1-kg gold bar is used as the standard unit of trade at the world's largest gold futures market, the New York Mercantile Exchange. The market expects that the 1-kg gold bar will be excluded from the tariff list.

Jim Wyckoff, a senior analyst at metals information firm Kitco Metals, said, "Traders will pay attention to factors other than tariffs," and added, "The U.S. is expected to cut its benchmark interest rate soon, which will have a positive effect on gold prices."

Reporter Sooyoung Kim swimmingk@hankyung.com