Gold miners slide pending US clarification on bullion tariff position
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The news: Shares in ASX-listed gold miners were among the biggest losers in morning trade after gold futures prices pared gains after the White House on Friday said President Donald Trump would “clarify” the US’ tariff position on bullion from Switzerland.
The numbers: At 11:42am AEST, Westgold Resources was the worst performing gold miner on the ASX 200, having slipped 3.6% to $2.97.
Regis Resources (-3%), Vault Minerals (-2.9%), Ramelius Resources (-2.8%) and Bellevue Gold (-2.8%) were also among the biggest losers.
The context: On 8 August, the futures price for gold on the Commodities Exchange in New York leaped above the spot price in London after it was reported that cast gold bars imported to the US from Switzerland would be subject to a 39% tariff rate levied against the country.
This was determined by a US Customs and Border Protection ruling dated 31 July.
However, the White House announced on 9 August that Trump “intends to issue an executive order in the near future clarifying misinformation about the tariffing of gold bars and other speciality products”.
On Monday, gold futures were trading around USD65 ($99.66) higher than the global spot benchmark after reaching a record gap of more than USD100. The spot price of gold also dipped 0.66% in the previous session.
The sources: US Customs and Border Protection ruling, Financial Times, Bloomberg, Reuters
