Reports Trump Will Exempt Gold from Tariffs Boost Market Confidence

The global gold market has welcomed reports that US president Donald Trump will exempt the precious metal from his latest round of tariffs, although investors are still awaiting clarification on how the government plans to implement this.

Gold rose to US$3,358.70 per ounce overnight on the back of the news, along with growing market confidence in an upcoming US interest rate cut after President Trump reportedly put pressure on treasury secretary Scott Bessent to lower borrowing costs.

News of the decision comes just days after the US Customs and Border Protection agency had speculated on its website that Washington might place country-specific import tariffs on the most widely traded gold bullion bars.

Swiss Cautiously Optimistic

“President Trump’s statement is an encouraging signal for trade stability,” Swiss Association of Precious Metals Producers and Traders (ASFCMP) president Christoph Wild said.

“However, only a formal and binding decision will provide the certainty the gold sector and its partners require.”

“The ASFCMP emphasises that stable and predictable trade rules are essential for the gold industry and for international market confidence.”

“The association awaits confirmation from the relevant US authorities to ensure that the announced measure is formally implemented and that the longstanding Swiss-US gold trading relationship can be resumed safely for all parties.”

Gold’s Unique Position

While the tariff news highlighted gold’s unique position at the intersection of commodity markets, monetary policy, and geopolitical considerations, recent gold price analysis suggest such policy uncertainties will continue to influence market dynamics.

The World Gold Council (WGC) noted in its July review that its gold return attribution model suggested a positive contribution from a rise in inflation expectations and tariff tensions via a geopolitical risk metric.

The gold price edged up in July, as tariff-led inflation expectations increased.

‘Essential Financial Component’

The WGC also noted that gold’s role in the US economy extends far beyond its commodity value.

“As a traditional safe-haven asset, gold serves as an essential component of the nation’s financial infrastructure and plays a critical role during economic uncertainty,” it wrote.

The Federal Reserve holds approximately 8,133 metric tons of gold in its reserves, making it the world’s largest official holder of the precious metal.

Despite the end of the gold standard decades ago, the WGC believes this massive stockpile underscores gold’s continued importance in America’s financial system.