Trump Removes Metal Tariffs, Targets Silicone, Gold Soars

President Trump issued an executive order lifting import tariffs on critical metals — gold bullion, graphite, tungsten and uranium — while imposing new reciprocal duties on silicone products, resin and aluminum hydroxide. The change, effective Monday and tied to the national emergency he declared in April, aims to secure supply chains for tech, energy and defense industries. The updated tariff policy also streamlines future trade agreements with the EU, Japan and South Korea by removing the need for individual executive orders. It extends relief to certain pharmaceuticals, including pseudoephedrine and antibiotics, that were caught in separate investigations. Gold prices reacted sharply: spot gold hit a record high of $3,599.89 per ounce and closed 1.4% higher at $3,596.55, while December futures rose 1.3% to $3,653.30. The rally, up 37% year-to-date, reflects a weaker dollar, growing bets on Fed rate cuts and concerns over central bank independence. August’s slowing job growth and a 4.3% unemployment rate have the market pricing a 90% chance of a 25 bp rate cut this month. Although gold’s safe-haven appeal may draw some capital from risk assets, rate-cut expectations could support broader liquidity, including in crypto markets.