Gold prices edged slightly higher during Thursday’s Asian session, staying within a tight range, while copper continued its sharp ascent after U.S. President Donald Trump officially confirmed a 50% tariff on copper imports, set to take effect August 1.
Broader metals gained ground as the U.S. dollar weakened following mixed signals about the Federal Reserve’s timeline for cutting interest rates. Despite Thursday’s dip, the greenback retained most of its recent rebound from multi-year lows.
Gold Futures Hold Steady Despite Trade Tensions
Spot gold rose 0.3% to $3,323.72 an ounce, with September gold futures up by the same margin at $3,332.45 as of 01:34 ET (05:34 GMT). The precious metal remained rangebound between $3,300 and $3,450 per ounce—levels it has held for weeks—amid conflicting forces in global markets.
While Trump’s announcement of sweeping trade tariffs sparked some investor attention, gold saw only limited demand as a safe haven. Several official letters confirmed the upcoming duties on key U.S. trade partners, but the delay in implementation until August provided a glimmer of hope for potential trade agreements.
Uncertainty Over Fed Policy Weighs on Gold Direction
The Fed’s June meeting minutes revealed ongoing debate over the timing of future rate cuts, with a majority still supporting reductions this year. However, concerns linger over inflation risks tied to Trump’s tariff policies.
Federal Reserve Chair Jerome Powell echoed those concerns, stating that uncertainty around the new tariffs remains the central factor holding the Fed back from cutting interest rates. Despite these headwinds, the dollar’s pullback offered temporary support to bullion prices.
In addition to policy uncertainty, diminished geopolitical tensions in the Middle East have reduced demand for traditional safe haven assets. As a result, gold has underperformed relative to other precious metals in recent weeks.
Silver and platinum continued to outperform gold. Platinum futures rose 0.3% to $1,387.60 per ounce, while silver gained 0.2% to $36.710 per ounce, keeping both close to recent multi-year highs.
Copper Prices Extend Rally Following Tariff Confirmation
Copper futures in the U.S. jumped 1.4% to $5.6183 per pound, remaining near the record levels reached earlier this week. On the London Metal Exchange, benchmark copper gained 0.5% to $9,687.10 per metric ton, recovering from a recent pullback.
Speaking Wednesday evening, President Trump said he would proceed with “50% tariffs on all U.S. copper imports, effective from August 1.” The move is widely expected to disrupt copper supply chains, given that over half of the copper used in the U.S. is imported.
According to Trump, the steep duties aim to “shore up domestic copper production,” though analysts remain skeptical that local output can scale quickly enough to offset lost imports.
The announcement initially rattled London copper markets due to expectations of reduced U.S. import demand. Nevertheless, prices have rebounded, fueled by strong overall demand and tight global inventories.
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