Gold prices hold steady as markets weigh Trump’s tariff threats and dollar gains
Gold prices remained stable during Asian trading on Tuesday, as renewed safe haven demand—sparked by U.S. President Donald Trump’s tariff warnings—was counterbalanced by a strengthening U.S. dollar, which curbed gains across metal markets.
The precious metal rose on Monday after Trump published letters proposing significant tariffs on a number of Asian and African countries. However, he also delayed the implementation deadline to August 1 and indicated a willingness to resume trade negotiations.
The dollar strengthened in response to Trump’s tariff announcements and expectations that U.S. interest rates would remain unchanged in the near term, both of which exerted pressure on metals.
Spot gold dipped slightly to $3,334.22 per ounce, while gold futures for September held steady at $3,343.70 per ounce as of 01:22 ET (05:22 GMT).
Mixed signals from Trump limit gold’s upward momentum
Trump stated on Monday that the August 1 deadline for new tariffs wasn’t set in stone and suggested his administration was open to additional talks. This, along with a recent postponement of a July 9 deadline, led some investors to believe the tariffs might not be implemented.
The uncertainty lifted investor sentiment on Tuesday, leading to gains in Asian equities and a rebound in U.S. stock futures.
Nonetheless, Trump’s letters on Monday detailed proposed tariffs—including a 25% duty on imports from South Korea, Japan, Malaysia, and Kazakhstan; a 30% tariff on South Africa; 32% on Indonesia; 35% on Bangladesh; and 36% on Thailand. These announcements initially rattled markets, dragging Wall Street lower and pushing gold prices higher.
Gold has traded within a limited range in recent weeks. While tariff concerns have stirred occasional risk aversion, robust U.S. economic indicators have led markets to downplay the chances of a near-term rate cut by the Federal Reserve. Despite this, gold prices remain near the record high of $3,500 reached earlier this year.
Dollar strength curbs metal price gains, Fed minutes in focus
The dollar slipped slightly in Tuesday’s Asian session but remained firm after surging overnight due to Trump’s tariff news. It continued to recover from recent three-year lows, supported by strong U.S. economic data that diminished expectations of imminent Fed rate cuts. Trump’s tariff threats also fueled demand for the dollar amid concerns over potential inflationary effects.
As a result, metal prices struggled to gain momentum. Platinum futures edged up 0.1% to $1,383.75 per ounce, and silver futures rose 0.3% to $37.008 per ounce, both staying close to their recent multi-year peaks.
In the industrial metals space, London Metal Exchange copper futures increased 0.2% to $9,839.80 per ton, while U.S. copper futures climbed 0.4% to $5.0260 per pound.
Markets are now awaiting the Federal Reserve’s June meeting minutes, expected later this week, for more clarity on the central bank’s rate outlook. While the Fed maintained a generally hawkish tone at the meeting, it gave no clear signal about future rate cuts.
