NEW YORK -- US President Donald Trump said Monday that gold will be exempted from tariffs, leading to a material drop in gold futures prices.

"Gold will not be Tariffed!" said Trump in a brief post on Truth Social.

Gold futures prices, backed by bars shipped from Switzerland and other key trading and refining hubs, moved up notably on Thursday and Friday due to speculation that the US Customs and Border Protection would classify 1-kilo and 100-ounce gold bars under a customs code that subjects them to tariffs.

On Monday, gold futures for August delivery on the New York Mercantile Exchange lost over 2 percent.

The United States recently imposed 39 percent tariffs on goods imported from Switzerland, which holds significant gold reserves and plays a crucial role in the settlement of gold futures on the international market.