Gold prices dipped in Asian trading on Friday, continuing their pullback from recent multi-week highs as optimism around global trade developments and booming AI-sector earnings shifted investor focus away from safe-haven assets.
The retreat followed a broader cooling in metal prices after strong early-week gains, though weakness in the U.S. dollar offered some support and limited further downside.
Spot gold fell 0.3% to $3,358.82 an ounce, while futures declined 0.4% to $3,360.80 as of 01:34 ET (05:34 GMT). Despite the slide, gold was still on track for a modest 0.3% gain for the week.
Silver Shines While Platinum Struggles
Silver emerged as the standout among precious metals, holding steady at $39.0115 per ounce and heading for a 2% weekly rise. Gold’s gains for the week were marginal, and platinum saw the most notable decline, falling 0.9% on the day and down 1.4% for the week to $1,404.06.
Investors grew more optimistic after a breakthrough in U.S.-Japan trade negotiations and a surge in AI-linked corporate earnings, prompting a move into equities and weighing on demand for metals.
U.S. stock indices reached fresh record highs on the back of those trade headlines, as confidence increased that President Donald Trump might finalize additional agreements with key trading partners, reducing market uncertainty.
Nonetheless, gold’s losses were tempered as markets looked ahead to key risk events, preserving some interest in safe-haven assets.
Copper Mixed as Tariffs Fuel U.S. Supply Concerns
Copper prices presented a mixed picture. London copper futures on the LME slipped 0.3% to $9,844.45 a ton, while COMEX copper edged down 0.2% to $5.8153 a pound.
LME contracts were largely flat for the week, but U.S. copper futures were poised to post a robust 3.8% weekly gain. Investors are bracing for potential supply disruptions if Trump’s proposed 50% tariffs on copper imports take effect next week.
Focus Turns to Fed Decision and Trump’s Tariff Deadline
Markets are turning their attention to next week’s Federal Reserve policy decision. Despite repeated calls from Trump for rate cuts, the central bank is widely expected to hold interest rates steady.
Fed Chair Jerome Powell has cited uncertainty over the inflationary effects of Trump’s tariffs as a reason to stay cautious. His resistance to policy change has intensified political friction, with Trump publicly pushing for his removal. On Thursday, the president made an unannounced visit to the Fed’s headquarters to observe renovation work—an act many viewed as symbolic.
The week ahead also marks Trump’s self-imposed August 1 deadline for new trade tariffs. Market participants are watching for a possible resolution to talks with the European Union, with reports suggesting that a reduced 15% tariff could be agreed upon, replacing the previously threatened 30%.
If no deal is reached, the steep copper tariffs are expected to proceed, which could exacerbate domestic supply shortages and provide further upside for U.S. copper prices.
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