Gold and Silver Pull Back Amid More Tariff Uncertainty

 

Gold and Silver Pull Back Amid Fresh Tariff Uncertainty

(Bullion News Network) – Gold prices pulled back on Monday amid a fresh round of uncertainty surrounding tariffs. Last Friday, gold futures soared to an all-time high after rumors circulated that Swiss gold bars may be subject to a 39% tariff. Prices retreated later in the day after the White House vowed to clarify how gold bars will be impacted by the tariffs on Switzerland. The price slide continued on Monday, with gold losing over $55 per troy ounce throughout the day. Silver prices suffered even more; the spot price of silver dropped by over $0.65/ozt on Monday, erasing gains from last Thursday and Friday. The price action favored gold, pushing the gold-silver ratio .25 points higher to 88.71:1.

Tariff uncertainty continued to be a major price driver for safe haven assets on Monday. U.S. President Donald Trump issued a short statement on Truth Social Monday morning:

A Statement from Donald J. Trump, President of the United States of America:

Gold will not be Tariffed!

Gold retreated on the announcement, with Trump’s gold tariff exemption triggering a sell-off among both physical gold and gold futures. Gold futures dropped even more than physical gold on Monday, shedding nearly $100 (2.78%) to close at a weekly low. Silver futures also lost ground amid the tariff controversy, dropping $0.90/ozt, or 2.34%, on Monday. This is down nearly $2 from July 23rd’s high of $39.52. Silver prices have closely correlated with gold price trends over the past few weeks, with both metals moving in similar directions amid heightened geopolitical tensions and uncertainty sparked by U.S. tariffs. 

Meanwhile, speculation surrounding the Federal Reserve’s September meeting is expected to play a major role in the precious metals market this month. The Trump administration continues to apply pressure to Federal Reserve Chair Jerome Powell; President Trump has repeatedly urged the economist to cut interest rates throughout 2025. The FOMC opted to keep interest rates unchanged at its July meeting, despite two dissenting votes from committee members. Following a worse-than-expected July jobs report, Fed futures jumped in favor of a rate cut at the September meeting. CME FedWatch now projects an 86.5% probability that the FOMC will vote to cut rates next month, up from 57% one month ago. 

Moving forward, traders will likely look for official confirmation that the Trump administration will not levy a tariff on gold bars globally. Last Friday, White House officials suggested that an executive order exempting gold from the slate of tariffs should be published soon. 

Investors’ eyes will also be on the Federal Reserve throughout August. On Tuesday, traders will be able to review the July Consumer Price Index (CPI) report, one of the main ways the FOMC measures inflation in the United States. Forecasters expect the CPI to decrease from 0.3% to 0.2%, but they also anticipate a marginal increase in the core July CPI from 0.2% to 0.3%. Major inflationary movement could directly impact the Fed’s approach to interest rates in September, so traders are likely paying close attention to July prices in advance of next month’s FOMC meeting.

In the platinum group metals sector, palladium prices jumped today as platinum largely moved sideways. Palladium gained nearly $20 per troy ounce, compared to losses of around $2.60/ozt for platinum. The platinum-palladium ratio continues to favor platinum, with platinum leading palladium by over $160 per troy ounce.