Gold Nudges Higher, Copper Rally Gains Momentum Following Trump Tariff Announcement
Gold prices posted modest gains during Asian trading on Thursday, staying within a recently defined range, while U.S. copper prices extended their upward momentum after President Donald Trump confirmed a 50% tariff on copper imports.
Overall metal markets benefited from a weakening U.S. dollar, which slipped amid mixed signals on the Federal Reserve’s interest rate outlook. Despite the decline, the dollar retained much of its recent rebound from multi-year lows.
Spot gold rose 0.3% to $3,323.72 per ounce, while September gold futures were up by the same margin at $3,332.45 as of 01:34 ET (05:34 GMT).
Although Trump’s sweeping tariff plans triggered some concern, they failed to spark a strong safe-haven move into gold. The president issued multiple letters this week outlining significant new tariffs on key trading partners but delayed their implementation until August 1—leaving some investors hopeful that trade agreements might still be reached.
Gold Remains Range-Bound as Fed Outlook and Safe-Haven Demand Diverge
Gold continued to hover between $3,300 and $3,450 per ounce, caught between limited demand for safety assets and pressure from the dollar.
Thursday’s modest price support came as the dollar softened in response to Federal Reserve minutes from the June meeting, which showed most officials backing rate cuts later this year. However, divisions remain over when those cuts should occur, especially amid concerns about the inflationary effects of Trump’s trade policy.
Fed Chair Jerome Powell reiterated that trade uncertainty—particularly Trump’s tariff threats—is a key reason the Fed has hesitated to cut rates sooner.
Gold’s appeal as a haven asset has also been dampened by easing geopolitical tensions, particularly in the Middle East, through late June. Over the past two months, silver and platinum have outperformed gold.
Platinum futures edged up 0.3% to $1,387.60 per ounce, while silver futures rose 0.2% to $36.710, both staying near their highest levels in several years.
Copper Surges as U.S. Tariff Plans Threaten Supply Chain
Copper futures in the U.S. jumped 1.4% to $5.6183 per pound, close to record highs set earlier this week. London Metal Exchange copper futures climbed 0.5% to $9,687.10 per metric ton, partially recovering from earlier losses.
Trump confirmed Wednesday evening that the U.S. will impose a 50% tariff on all copper imports starting August 1. The move is expected to put significant strain on domestic copper supplies, as the U.S. currently imports more than half of its copper.
Trump stated that the tariffs are designed to boost domestic copper production, although it remains uncertain whether local producers can scale up output to meet rising demand.
London copper prices had initially dropped on the news, reflecting concerns about reduced U.S. import demand—a critical driver for global copper markets, given the U.S.’s role as one of the top consumers of the metal.
