President Donald Trump said on Monday (August 11) that gold will not face tariffs, overturning a ruling by U.S. Customs officials that bars imported from Switzerland were subject to duties.

"Gold will not be taxed!" Trump wrote in a Truth Social post. Following the announcement, gold futures closed down 2.48% at $3,404.70 per ounce.

Price of the precious metal hit a record high last Friday (August 8) after U.S. Customs and Border Protection ruled that 1-kilogram and 100-ounce cast gold bars from Switzerland were subject to the 39% tariff imposed by the Trump administration on Swiss imports.

Such bars are used to back contracts on the COMEX, a major market for gold, silver, and other metals.

The Swiss Precious Metals Association said the ruling applies not only to Switzerland but also to any country that exports such bars to the United States. In other words, gold bars will be subject to U.S. tariffs at the prevailing tariff rates in their countries of origin.

The Swiss Precious Metals Association warned on Friday (August 8) that the customs ruling "could have a negative impact on the international flow of physical gold."

Trump imposed what he called "reciprocal tariffs" on dozens of U.S. trading partners on August 7.