Retweeting Marco Rubio ♬ sonido original Gold will NOT get tariffed! This public affairs claim flies in the face of a recent legal dismissal by U.S. Customs and Border Protection. The announcement follows closely on the heels of a whipsaw shift in the market. Indeed gold prices skyrocketed to a new all-time high a mere hour before this news was announced.
U.S. customs officials had originally decided that gold bars coming in from Switzerland should be subject to a 39% tariff. Since this ruling applied to both 1-kilogram and 100-ounce gold bars, it had far-reaching consequences on any country that exported gold to the United States. The Swiss Precious Metal Association previously warned of new tariffs on the industry. They cautioned that these tariffs would only increase costs for the consumer and for American gold market investors.
Specifically, on Friday, December 22, 2023, gold futures closed at $3,404.70 per ounce, down 2.48% since Trump’s announcement. This massive drop in price shows how swift the impact can be of regulatory decisions and high-profile comments on commodity markets. Prior to the announcement, gold was already on a roll, hitting record highs in value.
U.S. customs agents delivered an unusual ruling. This ruling could not only cause harm to the gold industry, but it would set a precedent to allow tariffs on gold imports from any other country. The Administration’s decision to exempt gold from these tariffs is a big deal. It would eliminate much of the liability traders and investors in the precious metals industry incur.
The effects of Trump’s announcement go beyond U.S.-Swiss trade relations. It’s the latest move in a shifting playing field for the global gold market. The rapid response of market prices has been a stark reminder of just how fragile commodity markets are to political announcements and regulatory actions.
An evocative image shown around the world. It features an employee expertly weighing one-kilogram gold bullions at the YLG Bullion International Co. headquarters in Bangkok, Thailand. This striking imagery serves to bring into focus the fact that the gold market is real. It really cuts through all the nonsense that’s out there in the debate.