Gold prices fall from record highs after Trump clarifies tariffs won't hit bullion imports

U.S. gold futures declined from last week's record highs on Monday after the Trump administration clarified that imported gold bars won't be subject to country-specific import tariffs.

Gold futures hit a record on Friday amid confusion over whether Washington would place the most widely traded gold bullion bars in the U.S. under country-specific tariffs. 

A ruling on the U.S. Customs and Border Protection Service's website came as a blow to global supply chains for the metal and contributed to the rise in gold futures as markets reacted to its potential impact on the U.S. role in the gold futures market. December U.S. gold futures rose to a record of $3,534.10 on Friday, when the Financial Times first reported the news regarding the customs ruling.

President Donald Trump on Monday posted on his Truth Social media platform in an effort to clear up the confusion, writing: "Gold will not be Tariffed!"

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The White House on Friday told Reuters that the administration was preparing an executive order "clarifying misinformation" about tariffs on gold bars and other products.

"Delighted to hear the crisis has been averted," said Ross Norman, an independent gold market analyst. "It will come as enormous relief to the bullion markets, as the potential for disruption was incalculable.

U.S. gold futures dipped 2.4% on Monday to $3,407 following the president's post, which reduced a premium over spot gold, the global benchmark, which also fell 1.2% to $3,357.

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Spot prices eased to $3,394 per ounce but are up 0.9% for the week. The spread between U.S. gold futures and spot prices widened, currently sitting at $100.

Amid the uncertainty of last week, analysts noted that a U.S. tariff on gold deliveries could significantly impact Switzerland, which is the world's leading hub for gold refining and transit.

Swiss goods are subject to U.S. import tariffs of 39%, and the country is continuing to negotiate with the U.S. about reducing the levies.

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The Swiss Precious Metals Association raised concerns about the impact of the tariffs on the gold industry, saying it's in active dialogue with stakeholders on the subject.

Reuters contributed to this report.