Following a record close, gold prices began to decline amid reports of tariffs from the White House, raising concerns among traders and market participants.
White House Statements
Futures for gold eased to $3,530 after hitting a record high of $3,491. This decline came after the White House clarified the need to 'clarify misinformation' regarding tariffs on gold bars.
Impact on Swiss Gold Industry
The Swiss Precious Metals Association expressed concern over potential negative impacts of tariffs on the international flow of gold. Its president, Christoph Wild, remarked: 'We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the U.S., a long-standing and historical partner for Switzerland.'
Gold Market and Predictions
Gold has surged 31% this year as investors sought safety amid trade and geopolitical tensions. However, tariffs could increase prices while affecting the logistics that sustain the global market. Experts like Joni Teves from UBS stated that 'the tariff adds costs to this process and, with the bulk of refining capacity sitting in Switzerland which faces 39% U.S. tariffs, these costs would be quite high.'
The situation regarding tariffs and their potential implications has raised significant concerns among traders and the gold market. Activity is expected to remain volatile until further clarity is provided.
