Gold prices slipped in Asian trading on Wednesday as the U.S. dollar gained strength. However, escalating trade tensions following President Donald Trump’s latest tariff measures helped limit losses, keeping demand for the precious metal steady.
Spot gold fell 0.2% to $2,912.0 per ounce, while April gold futures inched up 0.1% to $2,922.72 an ounce by 23:28 ET (04:28 GMT).
Tariff Concerns and Dollar Strength Weigh on Gold
On Tuesday, Trump imposed 25% tariffs on Canadian and Mexican goods and raised tariffs on Chinese imports to 20%.
Canada retaliated with 25% tariffs on C$30 billion worth of U.S. imports.
China imposed 15% tariffs on U.S. agricultural goods, including chicken and wheat, and 10% tariffs on soybeans and pork.
During his congressional speech, Trump reaffirmed plans for reciprocal tariffs set to take effect on April 2, further fueling trade tensions.
These developments strengthened the U.S. dollar, as investors sought stability in the world’s primary reserve currency. The U.S. Dollar Index rose 0.1% in Asian trading, though it remained near a three-week low.
A stronger dollar typically pressures gold prices, making the metal more expensive for holders of other currencies.
Gold’s Safe-Haven Appeal Remains Strong
Despite the dollar’s rise, gold maintained resilience, supported by its traditional role as a safe-haven asset amid global economic uncertainty.
Concerns over potential inflationary effects from the tariffs also contributed to gold’s appeal, keeping losses limited.
Other Precious Metals Show Gains
- Platinum futures rose 0.2% to $973.35 an ounce.
- Silver futures climbed 0.7% to $32.60 an ounce.
Copper Prices Rise on China Stimulus Hopes
Copper prices gained as investors anticipated fresh economic stimulus from China amid the country’s annual “Two Sessions” parliamentary meetings.
Hopes for new policies to boost infrastructure and manufacturing, key sectors for copper demand, supported prices.
Benchmark copper futures on the London Metal Exchange increased 0.3% to $9,391.70 per ton.
April copper futures surged 1.1% to $4.6290 per pound.
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