Gold prices remained largely unchanged during early Asian trading Tuesday as investors processed the latest tariff news from U.S. President Donald Trump. While the initial surge in safe-haven buying provided some lift, a firmer dollar limited further upside for the precious metal.
On Monday, gold gained ground following Trump’s release of tariff letters targeting several major Asian and African economies. However, his choice to postpone the effective date to August 1 and his openness to ongoing negotiations helped ease some market concerns.
The U.S. dollar strengthened following Trump’s announcement, buoyed by expectations that U.S. interest rates will remain steady—putting downward pressure on dollar-priced commodities like gold.
As of 01:22 ET (05:22 GMT), spot gold was slightly lower at $3,334.22 an ounce, while September gold futures held steady at $3,343.70 per ounce.
Tariff Uncertainty Sparks Volatility, Boosts Risk Appetite
Trump indicated that the August 1 deadline for new tariffs is flexible, suggesting continued talks with affected trading partners. This softer rhetoric came after a previous July 9 deadline was extended, raising hopes for a reduction in trade tensions.
This cautious approach helped lift riskier assets, pushing Asian stocks higher and aiding a rebound in U.S. futures. Still, the proposed tariff rates outlined in Trump’s letters were steep:
- 25% tariffs on imports from South Korea, Japan, Malaysia, and Kazakhstan
- 30% on South Africa
- 32% on Indonesia
- 35% on Bangladesh
- 36% on Thailand
Although these announcements initially weighed on Wall Street sentiment, they simultaneously triggered increased gold buying as a hedge against geopolitical uncertainty.
Gold has mostly traded within a range in recent weeks, buoyed by intermittent safe-haven demand but restrained by solid U.S. economic data. The metal remains just below its record peak of around $3,500 per ounce set earlier this year.
Dollar Strength Constrains Metals Ahead of Fed Minutes
The U.S. dollar eased marginally in Asian trade but remained relatively strong following an overnight rally. Trump’s tariff moves and positive economic indicators have reinforced market expectations that the Federal Reserve will hold interest rates steady, reducing gold’s allure as a non-yielding asset.
Market participants are now looking ahead to the release of the Federal Reserve’s June meeting minutes later this week, which could provide further clues on the central bank’s policy direction. So far, the Fed has maintained a cautious stance amid ongoing inflation pressures.
Stronger dollar momentum capped broader gains across precious metals:
- Platinum futures inched up 0.1% to $1,383.75 per ounce
- Silver futures rose 0.3% to $37.01 per ounce, both metals trading near multi-year highs
In the industrial metals sector, copper futures also showed modest gains:
- London copper futures climbed 0.2% to $9,839.80 per metric ton
- U.S. copper futures gained 0.4% to $5.03 per pound, reflecting sustained optimism about global demand despite trade uncertainties.