Gold Inches Up, Copper Surges Again After Trump Announces Import Tariffs

Gold prices saw modest gains during early Thursday trading in Asia, while copper extended its recent rally following a fresh wave of tariff announcements by U.S. President Donald Trump. The broader metals market was also buoyed by a softer U.S. dollar, though uncertainty over Federal Reserve policy kept gains in check.

At 01:34 ET (05:34 GMT), spot gold was up 0.3% at $3,323.72 per ounce, with September gold futures tracking a similar rise to $3,332.45.

Despite heightened trade tensions, the precious metal remained locked within a narrow range—between $3,300 and $3,450—reflecting investor hesitation amid mixed macroeconomic signals.

Tariff Tensions Fail to Ignite Gold Rally

Gold prices showed only a muted response to Trump’s aggressive trade stance, as the president outlined major tariff hikes in formal letters addressed to key U.S. trading partners. While the measures stirred concern, Trump also postponed the effective date to August 1, giving markets hope for last-minute negotiations.

“Uncertainty over Trump’s tariffs was the only factor keeping the Fed from cutting rates,” Fed Chair Jerome Powell recently stated—highlighting how political developments are influencing monetary policy.

Fed minutes from June revealed that a majority of officials were still in favor of rate cuts later this year. However, they were divided on timing, particularly given the inflation risks posed by new tariffs.

Gold’s Appeal Dims Amid Cooling Geopolitical Risk

Demand for gold as a safe haven has also eased following a de-escalation in military tensions in the Middle East late last month. Meanwhile, other precious metals like silver and platinum have outperformed gold in recent weeks.

Platinum futures climbed 0.3% to $1,387.60, while silver rose 0.2% to $36.710, with both metals hovering near multi-year highs.

Copper Extends Breakout as 50% U.S. Tariffs Loom

In contrast to gold, copper prices continued to rally. U.S. copper futures surged 1.4% to $5.6183 per pound, while London copper contracts rose 0.5% to $9,687.10 per ton, bouncing back from recent declines.

Trump reiterated on Wednesday that a “50% tariff on all U.S. copper imports” will take effect on August 1. The decision is part of a broader strategy to “shore up domestic copper production,” though analysts warn that U.S. suppliers may struggle to fill the gap.

The U.S. relies on imports for over half of its copper demand, and the new levies are expected to disrupt the global copper trade significantly. London copper had initially fallen on the news, anticipating lower demand from one of the world’s largest consumers, but regained ground as investors priced in long-term supply constraints.

This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.


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