Gold prices held steady in Asian trading on Tuesday after spiking to an all-time high above $4,100 per ounce earlier in the day, as escalating trade frictions between the U.S. and China intensified investor demand for safe-haven assets. Silver followed a similar path, briefly touching new peaks before reversing course.
Spot gold rose 0.4% to $4,125.35 per ounce by 03:41 ET (07:41 GMT), while U.S. gold futures inched up 0.1% to $4,138.40 per ounce.
The rally came after U.S. President Donald Trump threatened to impose 100% tariffs on Chinese goods in response to Beijing’s decision to tighten export controls on critical minerals used in key sectors like electronics and defense.
Trump later attempted to ease concerns, stating on social media: “Don’t worry about China” and adding that the U.S. was not seeking to harm Beijing.
Treasury Secretary Scott Bessent told Fox Business Network that a meeting between Trump and Chinese President Xi Jinping is still expected later this month in South Korea, hinting at a possible diplomatic opening.
China’s Ministry of Commerce confirmed on Tuesday that working-level talks with the U.S. are ongoing this week, while pledging to “fight till the end” against Washington’s measures.
The conflicting messages have added to market volatility, prompting investors to flock to gold as a hedge. A modest dip in the U.S. dollar further supported the precious metal.
Silver Pulls Back from Record High; Industrial Metals Weaken
Silver prices slid 1.7% to $49.565 per ounce after briefly topping $53. Platinum declined 1.2% to $1,658.45.
Copper was also under pressure. Benchmark futures on the London Metal Exchange dropped 2.8% to $10,519.05 per ton, while U.S. copper futures fell 3.4% to $4.96 per pound, reflecting renewed concerns over weakening Chinese demand.
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