Market News

(Bloomberg) -- Gold held losses after President Donald Trump said imports of bullion won’t be subject to US tariffs, further stabilizing the global bullion market after a federal ruling threw it into chaos and confusion.

“Gold will not be Tariffed!” Trump posted on social media. It did little to move bullion futures traded on New York’s Comex, which were 2.5% lower. The global benchmark for spot prices in London also held losses of about 1.3%.

No formal, updated policy had yet been posted by US agencies as of Monday afternoon.

A White House official suggested last week the administration would issue a new policy clarifying whether gold bars would face import taxes, after US Customs and Border Protection stunned traders by deciding the imports would be subject to duties.

The shock caused by a CBP ruling that certain bars would face import duties led futures on New York’s Comex to surge more than $100 above benchmark spot prices in London. The spread narrowed to about $50 on Monday.

Washington’s policy has sweeping implications for the flow of bullion around the world, and potentially for the smooth functioning of the US futures contract. The administration had exempted the precious metal from duties back in April, and until there is long-term clarity, traders say, precious metals markets will remain on edge.

“We see the various segments of the gold markets behaving in an orderly manner as the industry awaits this potential clarification,” Joseph Cavatoni, senior market strategist for North America at the World Gold Council, wrote in a post on LinkedIn. “We will continue to monitor the situation and update our research and insights as information becomes clearer.”

The precious metal has climbed about 30% this year, although the bulk of those gains occurred in the first four months as geopolitical and trade tensions rattled the market.

Traders will also be looking to Tuesday’s US inflation print for clues on how the Federal Reserve will approach interest rates in the months ahead. Economists expect that consumer prices, excluding volatile food and energy, rose 0.3% in July, quickening from a 0.2% increase the prior month.

The central bank has been resisting pressure from President Trump to loosen monetary policy, as it seeks to balance the risks of a cooling job market and still-elevated inflation. Lower rates are positive for non-interest bearing gold.

US gold futures were down  as of  in New York. Meanwhile, spot gold slipped  to $ an ounce. The Bloomberg Dollar Spot Index edged higher. Silver also fell, while platinum was little changed and palladium rose.

--With assistance from Yihui Xie.