Gold spot prices tumbled $55 to close at $3,341 per ounce on 11/8, following President Trump's statement on Truth Social that the US would not impose tariffs on gold imports. By the morning of 12/8, prices had edged up slightly to $3,351.

World gold prices fell sharply on 11/8. Graph: Kitco

The market had previously fluctuated significantly at the end of last week after the Financial Times reported a possible US tariff on 1 kg gold bars. This report cited a July 31 document from US Customs and Border Protection, suggesting that 1 kg and 100-ounce gold bars should be classified under a higher tariff code.

President Trump's denial eased market concerns. "Investors will now focus on other factors. For example, the prospect of a US interest rate cut may be approaching", said Jim Wyckoff, a senior analyst at Kitco Metals.

The market now awaits the US inflation report to better assess the Federal Reserve's (Fed) interest rate outlook.

Wyckoff predicts, "If this week's data is higher than expected, the Fed will have reason to keep interest rates unchanged in their September meeting. This will be unfavorable for gold". A weaker-than-expected jobs report had previously led investors to increase their bets on a September rate cut.

President Trump's 90-day extension of the tariff postponement with China also helped alleviate market uncertainty. Gold prices tend to rise in uncertain environments and low interest rates.

In addition to gold, silver and platinum also lost value at the start of the week. Silver fell 1.4% to $37.7 per ounce, and platinum dropped 0.4% to $1,326. Conversely, palladium rose 2.1% to $1,149.

Ha Thu (according to Reuters, Kitco)