Gold prices rose during Asian trading on Tuesday, driven by ongoing concerns over U.S. President Donald Trump’s escalating trade tariffs, which continued to fuel safe-haven demand. Additionally, moderate economic data from China reinforced investor caution.
Safe-haven sentiment was further supported by rising geopolitical tensions between Russia and Ukraine, as Trump authorized more military aid to Kyiv and threatened tougher sanctions on Russia’s oil exports.
However, gains in gold were contained by a firm U.S. dollar, keeping prices within a narrow range of $3,300 to $3,500 per ounce, while other metals saw limited movement. Investors were focused on the upcoming U.S. consumer price index (CPI) release for clues on interest rate policy.
As of 01:44 ET (05:44 GMT), spot gold rose 0.6% to $3,364.26 per ounce, while September gold futures gained 0.4% to $3,373.52.
Gold Strengthened by Trade and Geopolitical Uncertainty
Tuesday’s rise in gold extended recent gains, largely due to uncertainty surrounding Trump’s aggressive tariff measures. Over the past week, he unveiled 30% tariffs on imports from Mexico and the European Union, in addition to earlier trade threats.
The European Union is reportedly preparing retaliatory measures, although Trump has indicated potential willingness to resume trade negotiations.
With just over two weeks remaining to finalize trade agreements, markets remain wary that Trump may push forward with tariffs, possibly triggering a renewed global trade conflict.
On the geopolitical front, while Trump gave Russia a 50-day deadline to agree to a ceasefire in Ukraine, he also criticized President Vladimir Putin and authorized the delivery of offensive weapons to Kyiv capable of striking Moscow.
Other Precious Metals Hold Steady
Silver and platinum were stable on Tuesday, trading below recent highs. Despite outperforming gold in June, both metals are now facing resistance at current levels.
Dollar Holds Ground Ahead of Key Inflation Report
The U.S. dollar remained steady after strong gains in previous sessions, with traders awaiting the June CPI report. A firm dollar has pressured many commodity prices, including metals.
Both headline and core CPI figures are expected to show a slight uptick, offering more insight into how Trump’s tariffs are affecting U.S. inflation.
Persistent inflation could delay interest rate cuts by the Federal Reserve, which has recently signaled a cautious stance amid uncertainty over trade policy.
Copper Muted as China Data Signals Caution
Copper prices stayed subdued after a mixed batch of Chinese economic data. Benchmark London copper futures rose 0.2% to $9,642.20 per ton, while U.S. copper futures edged up 0.3% to $5.5460 per pound, stabilizing after a steep retreat from record highs.
China’s Q2 GDP came in slightly above expectations, buoyed by government stimulus and limited exposure to U.S. tariffs. However, growth still slowed from the previous quarter, and June’s weaker retail sales and fixed asset investment suggested further softness ahead.
While industrial output exceeded forecasts, analysts at ANZ warned the overall picture remains fragile, citing deflation as a key concern and predicting that Beijing’s stimulus effects may fade in H2.
As the world’s largest copper importer, any signs of a slowdown in China’s economy could weigh on future copper demand.
Still, there was some positive news—China’s copper imports rose 9% in June, breaking a two-month decline.
