U.S. President Donald Trump has clarified his stance on gold (GLD), stating that the precious metal will not face tariffs from his administration.
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The price of gold has been on a wild ride in recent days amid rampant speculation that President Trump planned to impose a tariff on the precious metal. In fact, gold had seen its biggest decline in nearly three months in early trading on Aug. 11 as investors prepared for import duties on the yellow metal.
But now, President Trump has clarified his position, stating on social media: “Gold will not be Tariffed!” The statement ends uncertainty that had been dragging the price of bullion lower in recent days, pulling it down from an all-time high of just above $3,500 reached at the start of August.
News that there will be no tariffs on bullion sent the stocks of gold miners such as Newmont (NEM), Kinross Gold (KGC), and Franco-Nevada (FNV) up about 2% in afternoon trading on Aug. 11.
Russia-Ukraine
Also weighing on gold’s price are expectations for a ceasefire and potential peace accord between Ukraine and Russia. President Trump has a meeting scheduled on Aug. 15 in Alaska with Russian President Vladimir Putin and possibly Ukrainian President Volodymyr Zelenskyy.
A peace deal between Russia and Ukraine could diminish gold’s allure as a safe haven asset. The price of gold is currently trading at $3,407.00 an ounce, down 2.41% on Aug. 11, its biggest decline since May 12 of this year. Gold’s price had risen 30% this year as concerns about geopolitical uncertainty intensified.
Is the SPDR Gold Shares Trust a Buy?
The SPDR Gold Shares Trust (GLD), which tracks the spot price of bullion, has gained 5% in the past three months, as evidenced by the chart below.
