On Monday local time, U.S. President Donald Trump wrote on social media, "Gold will not be taxed!"

After Trump's post, gold prices showed little short-term fluctuation, with spot gold maintaining a 1.58% decline, stabilizing near the daily low of $3,341.40, while COMEX gold futures held a 2.55% drop, steadying near the daily low of $3,402. Later, spot gold partially recovered its losses, rising from around $3,341 to $3,354.61, but still ended the day down 1.2%.

As of Monday afternoon local time, U.S. authorities had not issued any official policy updates.

Last week, U.S. Customs and Border Protection (CBP) stunned traders by announcing that gold imports would be subject to tariffs. According to the ruling, 1-kilogram and 100-ounce gold bars would be affected by the country-specific tariffs imposed by Trump, effective August 7. The decision was made in a letter to a Swiss gold refinery that had inquired about the applicability of tariffs on gold. The letter was later publicly posted on the agency's website.

Confusion over the CBP letter caused U.S. gold futures to surge to a record high last Friday, with traders saying gold shipments were temporarily frozen due to the sudden news.

If the decision had been upheld, it would have had far-reaching implications for the global gold market and the smooth operation of U.S. futures contracts. Gold's role as a financial asset and global currency distinguishes it from other commodities like copper, which have been volatile due to tariffs.

Industry traders, analysts, and executives had widely believed these gold bars would be exempt from Trump's so-called "reciprocal" tariffs, including the 39% tariff on Swiss goods.

The gold market stabilized later on Friday after a White House official told media via a written statement that the Trump administration planned to issue an executive order soon to clarify what it called "misinformation" about tariffs on gold and other special commodities.

This latest development added to a turbulent year for gold. Since the beginning of the year, gold prices have soared to unprecedented levels, driven by heavy central bank purchases and safe-haven demand amid Trump's trade wars.

Earlier this year, traders rushed billions of dollars worth of gold and silver into the U.S. due to a large premium on New York gold prices and market expectations of potential tariffs, causing a sudden shift in physical flows. However, when gold and silver were included in the tariff exemption list announced in early April, the arbitrage trade came to an abrupt halt.