Gold prices surged in Asian trading on Tuesday, fueled by growing investor demand for safe-haven assets amid ongoing uncertainty surrounding U.S. trade talks ahead of the July 9 deadline for tariff reviews set by President Donald Trump. The decline in the U.S. dollar also supported the precious metal’s upward momentum.
Spot gold climbed 0.8% to $3,328.71 per ounce, while August gold futures advanced 1% to $3,339.70 by early Tuesday morning ET (06:10 GMT). This gain followed a strong 1.5% jump on Monday, which helped recover losses from the previous week after the ceasefire between Israel and Iran eased geopolitical tensions.
Safe-Haven Demand Intensifies as Tariff Deadline Nears
Investors remain cautious as the 90-day tariff suspension is set to expire on July 9. Since the temporary halt began on April 2, the U.S. has secured only two trade agreements—with China and the United Kingdom. Countries without finalized deals risk facing reinstated tariffs, which could reach up to 50%.
A report by the Financial Times on Tuesday highlighted that U.S. trade officials are now concentrating on smaller, more targeted agreements in hopes of swift progress before the deadline. Meanwhile, the administration continues to contemplate tariffs on several key industries.
Market jitters were further stirred by President Trump’s threats of new tariffs against Japan, alongside warnings from U.S. Treasury Secretary Scott Bessent that despite ongoing negotiations, many nations may still face significant tariff increases. However, Bessent remains hopeful that several trade deals can be finalized before the cutoff.
This climate of uncertainty has driven investors toward traditional safe-haven investments, with gold being a primary beneficiary.
Precious and Base Metals Respond to Dollar Weakness and Positive Chinese Data
The U.S. Dollar Index remained near its lowest point in three years during Asian sessions, lending support to gains in precious metals.
Silver futures inched up 0.4% to $36.00 per ounce, while platinum slipped 0.4% to $1,360.45 per ounce. Copper prices also rose, with London Metal Exchange contracts increasing 0.2% to $9,839.95 per ton and U.S. copper futures gaining 1.2% to $5.1145 per pound.
Copper’s advance was boosted by a private survey showing a surprising expansion in China’s Caixin manufacturing Purchasing Managers’ Index (PMI) for June, lifting optimism for improved trade conditions in the world’s largest copper consumer.