Key Takeaways
- US Gold Tariff Uncertainty Roils Precious Metals: The U.S. government's recent ruling on tariffs for 1kg and 100oz gold bars has introduced significant uncertainty into the precious metals market, causing gold prices to fluctuate wildly after hitting record highs, and impacting silver prices.
- Zelenskyy and Modi to Meet in September: Ukrainian President Volodymyr Zelenskyy and Indian Prime Minister Narendra Modi have agreed to an in-person meeting in September, likely during the UN General Assembly, following a phone call focused on the Russia-Ukraine conflict and bilateral cooperation.
- Market Awaits White House Clarity on Tariffs: Gold (XAU) and silver (XAG) markets remain on edge as traders await an expected executive order from the White House to clarify the tariff policy, which could alleviate current market disruptions and impact global bullion flows.
- India's Diplomatic Push in Ukraine Conflict: The planned meeting between Zelenskyy and Modi highlights India's continued diplomatic engagement in seeking a peaceful resolution to the Ukraine conflict, with Modi reiterating calls for dialogue.
The precious metals market is experiencing significant volatility as the U.S. government grapples with clarifying its tariff policy on gold bullion. A recent ruling by U.S. Customs and Border Protection, which stated that 1-kilogram and 100-ounce gold bars would be subject to tariffs, has caused confusion and disruption in global bullion flows. This decision came as a surprise to many in the industry, who had previously understood such gold products to be exempt from duties.
Gold futures initially surged to record highs following the unexpected tariff news, before paring gains as the White House indicated it would issue an executive order to clarify the "misinformation" surrounding the policy. Silver prices have also been impacted by this uncertainty, showing initial firmness but later falling alongside gold as market participants await definitive guidance. The lack of clarity has particularly affected Switzerland, a major hub for gold refining and exports, with some refiners reportedly pausing deliveries to the U.S.. Analysts suggest that until long-term clarity is provided, precious metals markets will remain on edge.
Meanwhile, in a significant diplomatic development, Ukrainian President Volodymyr Zelenskyy and Indian Prime Minister Narendra Modi held a telephonic conversation on Monday, August 11, 2025. The two leaders discussed the ongoing Russia-Ukraine conflict and explored avenues for bilateral cooperation. During the call, Prime Minister Modi reiterated India's steadfast support for peace efforts and emphasized the importance of dialogue and diplomacy as the path forward in resolving the conflict.
President Zelenskyy briefed Prime Minister Modi on recent Russian attacks on Ukrainian cities and expressed gratitude for India's continued support for Ukraine's sovereignty and territorial integrity. Crucially, the leaders agreed to plan an in-person meeting in September, likely to take place on the sidelines of the United Nations General Assembly (UNGA). Zelenskyy also raised the critical issue of restricting Russian energy resource exports, particularly oil, to curtail Moscow's ability to finance the ongoing war. This engagement follows a recent conversation between PM Modi and Russian President Vladimir Putin, underscoring India's active role in global diplomatic efforts to de-escalate the conflict.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.