Gold holds loss as traders seek clarity on Trump’s no-tariff vow

Melbourne - Gold held a loss after US President Donald Trump said imports of bullion will not be subject to US tariffs, although traders were still waiting for formal clarification over the policy following a federal ruling last week that sowed chaos and confusion across the market.

Spot bullion held near US$3,350 an ounce as markets opened in Asia on Aug 12, following a 1.6 per cent drop on Aug 11 after Mr Trump posted “Gold will not be Tariffed!” on social media. Futures of the precious metal in New York also held a loss of about 2.5 per cent.

US Customs and Border Protection stunned traders last week by deciding the

gold imports would be subject to duties

. The shock led futures on New York’s Comex to surge more than US$100 above benchmark spot prices in London on Aug 8; the spread has since narrowed to about US$50.

Washington’s decision regarding gold tariffs 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 in April, and until there is long-term clarity, traders say, precious metals markets will remain on edge.

Gold has climbed more than 25 per cent in 2025, with the bulk of those gains occurring in the first four months. It has been supported by geopolitical and trade tensions that have spurred haven demand, along with strong central bank purchases.

Elsewhere, the US dollar rose on Aug 11 ahead of a key US inflation report due later on Aug 12 that may offer clues on the Federal Reserve’s interest rate path. Higher rates are negative for non-interest bearing gold, while a stronger greenback tends to make the dollar-denominated commodity more expensive for most buyers.

Investors were also weighing Mr Trump’s move on Aug 11 to extend a tariff truce on Chinese goods for another 90 days into early November. The move should ease worries of a renewed trade war, reducing haven demand.

Spot gold was up 0.2 per cent to US$3,348.54 an ounce at 7.36am in Singapore. The Bloomberg Dollar Spot Index was down 0.1 per cent, after posting a 0.3 per cent gain on Aug 11. BLOOMBERG