Trump announces exemption of gold from customs duties
Gold prices rose slightly on Tuesday, as gold prices are hovering around the levels of 3,345 dollars per ounce, after the strong declines that occurred yesterday after US President Donald Trump confirmed via his truth social platform, that gold will not be subject to any customs duties, which ended all speculation about the fate of gold bullion imports.
The announcement came days after the US Customs Authority decided to impose tariffs of 39% on Swiss gold bars (in the category of one kilogram and 100 ounces), in accordance with Trump's trade policy.
Switzerland, which recycles about 70% of the world's gold, would be the most affected if these tariffs were imposed, especially since a large part of its production is exported to the United States for investment and industrial use.
But with Trump's announcement, fears of disruption to global gold supply chains have dissipated.
As a result, gold prices fell by 1.7% in trading on Monday, recording the largest daily decline since mid-May.
Possible reasons for the decline:
- Profit taking: after the big rally this year, some investors preferred to sell gold for quick profits rather than wait for additional gains.
- Customs fears recede: as soon as the exemption of gold from duties is confirmed, there is no longer a strong motivation to buy it as a hedge against trade policy risks.
- Markets are risk-averse: as Trump extended the trade truce with China for 90 days, easing tensions between the world's two largest economies, some investors turned to higher-yielding assets such as stocks.
The markets are also waiting for the results of the US-Russian talks (Trump and Putin's planned meeting in 15 August on Ukraine).
What's next for gold ?
With the removal of the tariff factor, the focus is now on the US inflation statement to be released this afternoon.
Although the yellow metal is still in a strong uptrend this year, temporary corrections are normal in the markets, as happened yesterday.
On the technical side, gold retreated as we expected in the weekly metal analysis video and is approaching our expected buying areas
To follow the analytical video of gold from here
