Gold Prices Climb on Safe-Haven Demand Ahead of Tariff Deadline; Weaker Dollar Adds Support
Gold prices rose sharply in Asian trading on Tuesday, driven by increased demand for safe-haven assets amid uncertainty surrounding U.S. trade talks ahead of President Donald Trump’s July 9 tariff deadline. A softer U.S. dollar also helped lift bullion.
Spot gold was up 0.8% to $3,328.71 an ounce, while August gold futures gained 1% to $3,339.70 by 02:10 ET (06:10 GMT).
The metal had already risen 1.5% on Monday, recouping most of the losses incurred last week following the Israel-Iran ceasefire.
Investors Turn to Gold Ahead of Looming Tariff Risk
Market participants increased exposure to gold as uncertainty grew over the outcome of U.S. trade negotiations. The 90-day tariff pause, enacted on April 2, is set to expire next week. So far, the U.S. has finalized only two trade agreements—one with China and another with the UK.
Countries that fail to reach agreements by the deadline face reciprocal tariffs of up to 50%.
A Financial Times report on Tuesday revealed that U.S. trade officials are shifting focus to narrow, fast-track agreements to secure quick wins before the deadline. The administration is also reportedly still weighing targeted sector-specific tariffs.
President Trump further escalated tensions by threatening tariffs on Japan, while Treasury Secretary Scott Bessent warned that nations could still face steep tariffs despite negotiating in good faith. He also predicted a wave of trade deals just ahead of the deadline.
The uncertainty surrounding the global trade outlook prompted investors to seek safety in gold and other defensive assets.
Broader Metals Market Also Moves on Dollar Weakness
The U.S. Dollar Index remained under pressure during Asian hours, lingering near a three-year low, which made dollar-denominated commodities more attractive to foreign buyers.
- Silver futures rose 0.4% to $36.00 per ounce
- Platinum futures dipped 0.4% to $1,360.45
- In the base metals space:
- London copper futures edged up 0.2% to $9,839.95 per ton
- U.S. copper futures climbed 1.2% to $5.1145 per pound
Copper prices were further supported by a private Caixin PMI survey showing unexpected expansion in China’s manufacturing sector for June, suggesting stronger trade conditions in the world’s top copper importer.
