Gold prices hovered near flat in Asian trading Tuesday as markets digested a fresh wave of tariff-related headlines from U.S. President Donald Trump. While safe-haven demand initially lifted bullion, a stronger dollar kept overall gains in check.
The precious metal had climbed on Monday after Trump published a series of letters proposing steep tariffs on several key Asian and African economies. However, his decision to delay the implementation deadline to August 1 and his expressed willingness to continue negotiations tempered investor anxiety.
The U.S. dollar gained ground in the wake of Trump’s announcement, with sentiment buoyed by stable U.S. rate expectations—adding pressure on commodities priced in greenbacks, including gold.
By 01:22 ET (05:22 GMT), spot gold slipped slightly to $3,334.22 an ounce, while September gold futures were unchanged at $3,343.70 per ounce.
Tariff Talk Fuels Uncertainty, Boosts Risk Sentiment
President Trump said Monday that the August 1 tariff deadline was not set in stone, leaving the door open for further dialogue with trade partners. His remarks followed the extension of a prior July 9 deadline, encouraging hopes for a de-escalation in trade tensions.
This softer stance gave risk assets room to rally, pushing Asian equities higher and helping U.S. stock futures recover from earlier declines. However, the relief was tempered by the actual contents of Trump’s letters, which proposed aggressive import duties:
- 25% tariffs on imports from South Korea, Japan, Malaysia, and Kazakhstan
- 30% on South Africa
- 32% on Indonesia
- 35% on Bangladesh
- 36% on Thailand
While those letters initially dented investor sentiment on Wall Street, they also prompted increased buying in gold as a hedge against geopolitical volatility.
Still, gold has been largely rangebound in recent weeks, supported by periodic bursts of safe-haven demand but restrained by firm U.S. economic data. Bullion remains just shy of the $3,500 per ounce all-time high reached earlier this year.
Dollar Strength Limits Metals Rally Ahead of Fed Minutes
The U.S. dollar eased slightly in early Asian trade but remained elevated following a sharp overnight rally. Trump’s tariff maneuvers and upbeat economic indicators have fueled expectations that the Federal Reserve will hold rates steady, diminishing the appeal of non-yielding assets like gold.
Traders are also looking ahead to the release of the Fed’s June meeting minutes later this week, which could offer further guidance on the central bank’s monetary policy direction. The Fed has so far shown little urgency to ease, maintaining a cautious stance in light of persistent inflationary pressures.
Stronger dollar momentum capped gains across the broader metals complex.
- Platinum futures edged up 0.1% to $1,383.75/oz
- Silver futures rose 0.3% to $37.008/oz, with both metals trading near multi-year highs
In the industrial metals space,
- London copper futures added 0.2% to $9,839.80 per metric ton
- U.S. copper futures rose 0.4% to $5.0260 per pound, reflecting continued optimism over global demand despite trade jitters.
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