U.S. tariff announcement propels gold futures to new heights, whilst equities experience a mixed performance on the trading floor.
The U.S. trade policy has taken a significant turn, with the exemption of gold imports from tariffs. This decision, announced on August 12, 2025, has brought relief to the bullion market and helped cool gold price surges.
President Donald Trump officially stated that "Gold will not be Tariffed!", a move aimed at calming fears and stabilizing the market after confusion over a U.S. Customs letter suggested tariffs might be applied on standard gold bars. This exemption reversed an earlier announcement that had triggered a 39% reciprocal tariff on Swiss gold bars, the bulk of Switzerland's exports to the U.S.
The tariff news had caused gold futures to spike to a record intraday high of $3,534 per ounce, reflecting market shock and arbitrage distortions due to the tariff risk. However, with the tariff threat removed, gold futures have pulled back to around $3,454 an ounce.
Meanwhile, the tech-rich Nasdaq Composite Index has benefited from reduced trade policy risks and maintained strong gains. The Nasdaq posted a second straight record on a sunny Friday in New York, amid sustained optimism around artificial intelligence investments and reduced trade policy uncertainty following the tariff exemption decision. Tech companies such as Apple, Nvidia, and Alphabet have gained significantly amid investor confidence that U.S. trade policy would not impede the tech sector's earnings outlook.
In summary, the exemption of gold from tariffs stabilizes the bullion market and prevents spillover shocks that could otherwise have disturbed broader financial markets. The tech sector, on the other hand, continues its strong performance independent of gold price swings.
Other market movements include:
- The FTSE 100 closed down 0.1 percent at 9,095.73 in London.
- Apple won 4.2 percent, its third straight significant gains.
- The CAC 40 closed up 0.4 percent at 7,743.00 in Paris.
- The S&P 500 closed up 0.8 percent at 6,389.45 in New York.
- The Dow closed up 0.5 percent at 44,175.61.
- The Nikkei 225 closed up 1.9 percent at 41,820.48 in Tokyo.
- The Hang Seng Index closed down 0.9 percent at 24,858.82 in Hong Kong.
- The Shanghai Composite closed down 0.1 percent at 3,635.13.
- The Euro/dollar exchange rate decreased to $1.1643 from $1.1666.
- The Euro/pound exchange rate decreased to 86.54 pence from 86.77 pence.
- The Dollar/yen exchange rate increased to 147.79 yen from 147.14 yen.
- The Pound/dollar exchange rate increased to $1.3451 from $1.3444 on Thursday.
- Brent North Sea Crude closed up 0.2 percent at $66.59 per barrel.
- West Texas Intermediate closed flat at $63.88 per barrel.
- The DAX closed down 0.1 percent at 24,162.86 in Frankfurt.
The Trump administration plans to issue an executive order clarifying misinformation about the tariffing of gold bars and other specialty products. This move is expected to provide further clarity and boost investor confidence in the U.S. trade policy.
- The exemption of gold from tariffs has created a favorable environment for investing in the technology sector, as the tech-rich Nasdaq Composite Index continues to benefit from reduced trade policy risks and maintain strong gains.
- The tariff exemption decision has significantly impacted the finance world, not only stabilizing the bullion market but also preventing potential spillovers that could distort broader financial markets.
- As the Trump administration plans to issue an executive order clarifying the misinformation about the tariffing of gold bars and specialty products, investor confidence in the U.S. trade policy is expected to increase, potentially leading to increased investments in various business sectors, including the stock-market and artificial-intelligence industries.
