International News

Focus shifts back to tariff war and geopolitics: AUGMONT BULLION REPORT

Published

9 months ago

May 26, 2025

1,157 Views

Gold saw a strong increase last week, jumping about 4% as the dollar fell following U.S. President Donald Trump’s warning to put 50% tariffs on European Union imports on July 9. This further shook the global economy and increased demand for safe-haven assets. Trump says he would impose 25% tariffs on Samsung and Apple devices.

The dollar saw its largest weekly percentage drop since early April last week, falling 2% and returning to 99 levels. The main issue affecting the dollar at the moment is the decline in trust in American policy. The Congressional Budget Office estimates the recently enacted US tax measure, which is now headed to the Senate, will cost close to $4 trillion, escalating concerns about long-term fiscal instability. These worries about growing deficits and growing debt servicing costs are highlighted by Moody’s recent lowering of the US credit rating.

The spending package is anticipated to be discussed by the US Senate and put to a vote before July 4 following the Memorial Day vacation on May 26. Markets may find it challenging to stage a consistent recovery if they continue to believe that the Senate will adopt the package with few modifications.

Since Moody’s lowered the US credit rating late last Friday, raising worries about the nation’s $36 trillion debt burden and Trump’s quest for tax cuts that may increase it by $4 trillion, investor sentiment has been brittle.

Meanwhile, Gold received a further lift from rising international tensions. Risk aversion was exploited by the precious metal due to the lack of progress in Ukraine-Russia talks and growing concerns of a worsening Middle East conflict following reports of Israel increasing its strikes on Gaza and preparing to target nuclear facilities in Iran.

Headlines of the US trade talks will be closely examined in the interim. Safe-haven flows may continue to control financial market activity and pave the way for another move higher in gold prices if the US is unable to advance negotiations with important trading partners like the EU and Japan. Furthermore, the precious metal may continue to benefit from a further escalation of Middle East hostilities.

Gold prices are expected to trade in the range of $3275 (~Rs 95000) and $3375(~Rs 96400) in the near term. Either side breakout or breakdown will give 2-3% movement. Silver is expected to continue its range-bound momentum from $32 (~Rs 94000) to $34(~Rs 98000) going forward.

Metal	Expected Price Range (USD)	Approx. INR Equivalent	Notes
Gold	$3,275 – $3,375	₹95,000 – ₹96,400	Breakout or breakdown may lead to a 2–3% move in either direction
Silver	$32 – $34	₹94,000 – ₹98,000	Expected to remain range-bound in this zone for the near term

Related Topics:2025 Augmont Bullion Report internationalnews

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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.

Published

2 days ago

February 27, 2026

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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.