Gold Prices Surge Amid Trade Uncertainty Ahead of Trump’s Tariff Deadline

Gold prices climbed sharply in Asian markets on Tuesday, driven by increased demand for safe-haven assets as investors grapple with uncertainty surrounding U.S. trade negotiations ahead of President Donald Trump’s looming July 9 tariff deadline. A softer U.S. dollar further boosted the precious metal’s appeal.

Spot gold gained 0.8%, reaching $3,328.71 per ounce, while August gold futures rose 1% to $3,339.70 by early Tuesday morning ET (06:10 GMT). This came on the heels of a 1.5% rise the previous day, recouping much of last week’s losses following the Israel-Iran ceasefire.

Safe-Haven Demand Rises as Tariff Deadline Approaches

The upcoming expiration of a 90-day tariff pause on July 9 has investors on edge. Since the pause began on April 2, the U.S. has finalized only two trade agreements—with China and the UK. Nations without a deal by the deadline risk having reciprocal tariffs reinstated, potentially up to 50%.

According to a Tuesday report by the Financial Times, U.S. trade officials are now focusing on narrower, more targeted agreements to secure quick progress before the deadline. The administration is also still weighing tariffs on several critical sectors.

Adding to market tensions, President Trump has threatened new tariffs on Japan, while U.S. Treasury Secretary Scott Bessent warned that despite ongoing negotiations, many countries could still face steep tariff hikes. Bessent expressed optimism that a flurry of trade deals might still be reached ahead of the cutoff.

This mix of uncertainty and potential for new tariffs has driven investors toward traditional safe-haven assets like gold.

Metals Markets React to Dollar Weakness and Positive Data

The U.S. Dollar Index remained weak during Asian trading, hovering near three-year lows, which supported gains in precious metals.

Silver futures inched up 0.4% to $36.00 per ounce, while platinum futures slipped 0.4% to $1,360.45. Copper also posted gains: London Metal Exchange copper futures rose 0.2% to $9,839.95 per ton, and U.S. copper futures climbed 1.2% to $5.1145 per pound.

The rally in copper was bolstered by a private survey revealing unexpected expansion in China’s Caixin manufacturing PMI for June. This improvement in trade conditions lifted sentiment in the world’s largest consumer of copper.