International News
Do nothing, When you do not know, what to do AUGMONT BULLION REPORT
Last week’s larger market sell-off, which was triggered by hawkish comments from U.S. Federal Reserve officials that dampened expectations for a December interest rate cut, caused gold prices to drop 2.5% and silver prices to drop 5.5%. In the meantime, the Federal Reserve is citing the shutdown blackout as justification for maintaining unchanged interest rates in December. Naturally, this is in line with the proverb, “Do nothing when you do not know what to do.”
Since the beginning of last week, the US dollar’s weakness and rumours that the Fed would resume asset purchases have served as catalysts for gold’s rise, but Thursday and Friday made it abundantly evident that this is no longer the case. Additionally, gold and silver faced pressure from position closing to meet margin calls brought on by declines in equity markets, which fell on Friday after the global selloff sparked by hawkish Fed signals. Market expectations for a 25 basis-point rate cut next month dropped to 42% from 64% earlier this week, down from more than 95% a month ago, according to CME Group’s FedWatch tool.
The longest U.S. government shutdown ended Thursday, creating a major data gap that left the Fed and traders flying blind ahead of next month’s policy meeting. The U.S. government shutdown lasted 43 days, the longest in history, but the effects will likely be felt for the next few weeks. Some economic data, such as October’s CPI numbers, will be lost forever because that information is collected manually. For economists, this could be a significant issue because economic modelling depends on reliable, consistent data.
In the end, inflation is not high enough to stop the Fed — especially as it continues to face pressure from President Donald Trump — from cutting interest rates, and even if the central bank skips the December meeting, rates will be lower in 2026. While there are clear signs that the U.S. labour market is losing significant momentum, even without October’s economic data, inflation is also not accelerating. One Federal Reserve meeting will not affect gold’s long-term fundamental support.
International News
AGTA appeals US Government to Scrap 10% Import Tariff on Gemstones
Trade body seeks exemption for coloured gemstones under new temporary tariff regime, with potential implications for diamonds.
The American Gem Trade Association (AGTA) has formally appealed to the US government to remove the newly imposed 10% global import tariff on gemstones, and potentially diamonds, warning of its impact on the trade.
The tariff was announced on February 20 after the US Supreme Court struck down President Donald Trump’s reciprocal tariffs issued under the International Emergency Economic Powers Act (IEEPA). In response, the administration introduced a temporary 10% import surcharge under Section 122 of the Trade Act of 1974. The measure will remain in effect for 150 days unless Congress votes to extend it, though further tariff mechanisms have not been ruled out.
AGTA has submitted a formal request to the Office of the United States Trade Representative (USTR), urging that precious and semiprecious coloured gemstones be added to the exception list under Annex I or Annex II. The association argued that these stones are not mined domestically in the US and therefore should qualify for exemption.
Previously, AGTA’s lobbying efforts contributed to diamonds and gemstones being included in Annex III — a list of products eligible for potential exemption from duties for “aligned” countries. This had placed Indian diamonds and gemstones on track for relief following a prospective US-India trade agreement. However, it remains unclear whether Annex III provisions apply under the new tariff framework that recently took effect.
If the across-the-board exemption request is denied, AGTA has asked the USTR to confirm whether Annex III remains a viable pathway for country-specific tariff relief on coloured gemstones.
While the current petition focuses on coloured gemstones, AGTA noted that trade experts believe any exemption granted in this category could effectively extend to diamonds, as seen in past trade agreements such as the US–European Union deal.
“We will continue to work tirelessly toward eliminating tariffs on gemstone imports into the US. We remain fully committed to this effort — giving up is not an option,” said AGTA President Bruce Bridges and CEO John Ford.
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