Gold Price on a "Roller Coaster"?

On August 11th local time, U.S. President Trump stated on social media that he would not impose tariffs on gold, a move welcomed by the global gold market. In recent days, concerns have persisted about gold potentially being drawn into global trade disputes.

"There will be no tariffs on gold!" Trump said on social media, without providing details.

Subsequently, the price of gold futures for December delivery on the New York Mercantile Exchange fell 2.5% to $3,404.70 per ounce.

On August 7th, reports emerged that the U.S. government had imposed tariffs on imported 1-kilogram gold bars, based on a letter from U.S. Customs and Border Protection dated July 31st. The 1-kilogram gold bar is the most common form of trading on the New York Mercantile Exchange, the world's largest gold futures market.

On August 8th, U.S. Customs and Border Protection published a decision on its website stating that Washington might impose tariffs on gold bars imported from specific countries.

Following this, gold futures for December delivery on the New York Mercantile Exchange rose to a record high of $3,534.10 per ounce.

Simultaneously, White House officials revealed that the Trump administration was preparing an executive order to clarify "misinformation" regarding tariffs on gold bars and other specialty products.

However, the situation remains unclear.

Since the beginning of this year, international gold prices have risen by about 30%, with most of the increase occurring in the first four months when geopolitical and trade tensions unsettled markets. Gold often performs well during times of turbulence and low interest rates.

Meanwhile, Washington's policies will have wide-ranging effects on global gold flows. If the U.S. imposes tariffs on gold, it would be particularly unfavorable for Switzerland, a major refining and transit center.

Now, Trump's latest statement is expected to end speculation about gold being drawn into global trade disputes.

Some market analysts say this is great news. If the U.S. were to actually impose tariffs on gold, the damage would be immeasurable.

Traders also indicate that the precious metals market will remain tense until the long-term situation becomes clear.