Gold Price Drops as White House Addresses Tariff Misinformation and Ceasefire Hopes Rise

Gold prices fell 2.1% to $3,418 an ounce, the most significant drop in three months, as the US seeks to clarify its tariff plan on bullion imports. The White House's plans to address "misinformation" about import tariffs for gold bars led to a halt in bullion deliveries to the US by some industry players. The gold price surge was also influenced by hope for a ceasefire in the Ukraine-Russia conflict and the potential tariffs on Swiss gold imports.

Gold prices experienced a significant drop of 2.1% to $3,418 an ounce, marking the largest decline in three months. This sharp decrease was driven by several factors, including the U.S. government's plans to clarify its stance on tariffs for gold bullion imports.

The White House's announcement of an executive order to address "misinformation" about import tariffs on gold bars led to a temporary halt in bullion deliveries to the United States by some industry players. This uncertainty caused a temporary slowdown in the supply chain, contributing to the price drop.

Additionally, the gold price surge was influenced by hopes for a ceasefire in the ongoing Ukraine-Russia conflict. The potential for a ceasefire has been a significant driver of demand for gold as a safe haven asset. The gold price had already risen by around 30% this year due to concerns about U.S. economic policy uncertainty.

The U.S. Customs and Border Protection service had previously indicated that it might place gold bullion bars under country-specific import tariffs, which caused the initial price increase. However, the Trump administration later suggested that it would issue a new policy clarifying that imports of gold bars should not face tariffs. This clarification led to the subsequent decline in gold prices.

The potential tariffs on Swiss gold imports also played a role in the price drop. Switzerland is a major hub for gold refining and transit, and any tariffs could significantly affect the country's gold industry. The uncertainty surrounding these potential tariffs contributed to the decline in gold prices.

Overall, the gold market has been volatile in recent weeks due to the combination of geopolitical tensions, policy uncertainty, and supply chain disruptions. As the U.S. seeks to clarify its tariff plan on bullion imports, investors are closely watching for further developments that could impact the gold price.

References:
[1] https://www.moomoo.com/news/post/70744876/record-tr4cking-news-default
[2] https://economictimes.indiatimes.com/markets/commodities/news/us-gold-futures-pare-gains-after-official-says-white-house-to-clarify-tariff-policy-on-bullion-bars/articleshow/123200199.cms
[3] https://www.morningstar.com/news/marketwatch/2025081127/gold-price-tumbles-most-in-3-months-on-reports-us-to-clarify-tariff-plan-on-bullion
[4] https://en.as.com/latest_news/the-deadline-is-quickly-approaching-for-a-russia-ukraine-ceasefire-will-trump-postpone-the-date-again-n/