Gold falls as markets await inflation data, Trump clarifies no tariffs on gold

Gold prices fell on Monday after President Donald Trump said tariffs will not be placed on imported gold bars, while investors awaited a U.S. inflation report that could provide an indication of the Federal Reserve's rate outlook.

U.S. gold futures for December delivery settled 2.5% lower at $3,404.70 an ounce. Prices hit a record high on Friday after reports that Washington may place the most widely traded gold bullion bars in the U.S. under country-specific import tariffs.

However, in a statement posted on his social media account on Monday, Trump said gold would not be subject to tariffs, but gave no other details.

The market may be a little bit more bearish, as this uncertainty is out of the way, said Jim Wyckoff, senior analyst at Kitco Metals.

"The traders are going to move on and focus on other things and that might actually be friendly for gold because of the prospect of lower interest rates coming soon in the U.S."

Spot gold was down 1.2% at $3,358.33 as of 1:52 p.m. ET (1752 GMT).

On the data front, U.S. consumer price data is due out on Tuesday, followed by producer price data on Thursday.

"If this week's inflation figures come in higher than expected, it could give the Fed a reason to pause the anticipated rate cut in September, which would be bearish for gold prices," Wyckoff added.

A recent weaker-than-expected U.S. jobs report has increased traders' bets for a Fed rate cut in September.

Trade negotiations were also in the spotlight as the August 12 deadline set by President Donald Trump for a U.S.-China deal approached.

Meanwhile, Trump will meet with Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.

Gold tends to perform well during periods of uncertainty and in a low-interest rate environment.

Spot silver fell 1.4% to $37.78, platinum dipped 0.4% at $1,326.09, and palladium rose 2.1% to $1,149.25.