Gold futures in New York were steady as traders awaited clarification from the White House on its tariff policy, after a US government agency surprised markets last week by formally deciding that 100-ounce and one-kilogram gold bars would be subject to duties.

Gold futures traded around $65 an ounce above the global spot benchmark on Monday, after surging to a record on Friday before erasing gains as the government told Bloomberg it would clarify what it called "misinformation" about tariffs on gold and other specific products. The price spread between trading centers in the US and London fell below $60 an ounce, after previously soaring above $100 in response to the initial tariff surprise.

Washington's policy has broad implications for the flow of bullion around the world, and potentially for the smooth functioning of US futures contracts. The government exempted the precious metal from duties in April, and until there is longer-term clarity, traders said, the precious metals market will remain cautious.

"We are seeing various segments of the gold market behave in an orderly manner as the industry awaits this potential clarification," wrote Joseph Cavatoni, senior market strategist for North America at the World Gold Council, in a LinkedIn post. "We will continue to monitor the situation and update our research and insights as more information becomes clear."

The precious metal has gained about 30% this year, although most of that gain occurred in the first four months as geopolitical and trade tensions roiled markets. On Friday, prices closed higher for the second straight week, about $100 off their all-time high in April.

Traders will be watching Tuesday's U.S. inflation data for clues on how the Federal Reserve will approach interest rates in the coming months. Economists expect consumer prices, excluding volatile food and energy, to rise 0.3% in July, up from a 0.2% increase the previous month.

The central bank has resisted pressure from President Donald Trump to ease monetary policy, as it seeks to balance the risks of a cooling labor market and persistently high inflation. Lower interest rates are positive for non-yielding gold.

Spot gold fell 0.1% to $3,394.13 an ounce as of 7:46 a.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.1%. Silver weakened, while platinum gained slightly. (alg)

Source: Bloomberg