Gold’s Asian Tariff Double Whammy: Malaysia and Nepal Rewrite Import Rules as Market Awaits US Jobs Data

Malaysia imposes 10% duty on LBMA gold bars from June 2026; Nepal doubles import tax to 20%, sending local prices to record highs. Global gold steady at $4,569.90 despite regulatory turbulence.

The physical gold market is being remapped from Kuala Lumpur to Kathmandu. Malaysia will slap a 10% import duty on LBMA-standard gold bars from 8 June 2026, ending decades of tariff-free bullion trade, while Nepal has already more than doubled its import levy to 20% — a move that sent its domestic gold price to a record 311,100 rupees per tola in a single session.

Malaysia’s tax, announced with little warning, targets the 99.99% purity bars favoured by central banks and institutional investors. Lower-grade bullion and jewellery remain exempt, creating a two-tier import regime that specifically penalises the highest-quality metal. Compounding the disruption, traders report that some shipments arriving since early May have already been charged the new duty, with goods held at customs or diverted when local market prices failed to adjust. Bank Muamalat Malaysia has confirmed it will fully pass on the extra cost; a one-kilogram bar could soon cost roughly $11,300 more than in the week before the announcement.

Nepal’s action, although even steeper, had an immediate and starkly visible impact. The doubling of import duties from 10% to 20% lifted the in-country price by 20,500 rupees per tola overnight, pushing it to an all-time high. Together, the two moves underscore a growing readiness across Asia to use tariff levers to manage gold flows — a pattern already seen in India, which raised its import tax from 6% to 15% last year to curb its trade deficit and shore up the rupee.

Meanwhile, Turkey is pursuing a different strategy, aiming to funnel thousands of tonnes of private gold holdings into the official financial system to bolster national reserves. Past attempts have produced mixed results, leaving the initiative’s impact uncertain.

Despite the regulatory turbulence, the global spot price held steady through the week. Gold closed Friday at $4,569.90 an ounce, up 1.57% on the day and roughly 1% higher for the week. Year-to-date gains stand at 5.25%, though the metal remains about 16% below its January peak of $5,450.

A confluence of supportive forces is keeping a floor under the quote. Falling oil prices have tempered inflation expectations, reducing the odds of further Federal Reserve tightening. Hopes of a US-Iran ceasefire agreement have added to the disinflationary narrative. Vice President JD Vance signalled progress on talks, though final presidential approval is pending. If a truce materialises, continued downward pressure on crude would provide an additional tailwind for gold.

Yet the inflation side of the ledger remains sticky. April’s US inflation reading marked the strongest monthly increase in three years, a data point that likely locks the Fed into holding rates steady until well into 2027. That tension between easing geopolitical risk and stubborn price pressures is likely to keep gold rangebound for now.

All eyes now turn to a busy week for US labour market data. ADP employment figures and the Fed’s Beige Book due on 3 June will be followed by May nonfarm payrolls and the unemployment rate on 5 June. A soft jobs print would reignite expectations of earlier rate cuts and give gold fresh upside momentum.

Chartists see the band between $4,320 and $4,370 as the key support zone — a level that, if it holds, keeps the broader picture constructive. Secondary support sits at $4,488, while on the topside resistance clusters around $4,786. Breaking through that zone would reopen the path toward the 52-week high of $5,450, though that remains a 16% climb from current levels.