Gold prices traded marginally higher in Asian trade on Tuesday, buoyed by rising demand for safe havens amid fresh trade tariff threats from President-elect Donald Trump. However, a stronger US dollar capped significant gains in the precious metal.
Key Highlights:
Gold Performance: Spot gold rose 0.1% to $2,628.69 an ounce, and December gold futures rose 0.4% to $2,653.75 an ounce.
Trump Tariff Announcement: Trump proposed new tariffs – 10% on Chinese imports and 25% on Canadian and Mexican goods – citing concerns over illegal immigration and drug flows. This raised fears of a renewed global trade war, particularly with China.
Dollar Jumps: Despite gold’s safe-haven appeal, the metal’s gains were capped as the dollar strengthened, hitting near two-year highs.
Other metals:
Silver: Futures rose 0.5% to $30.823 an ounce.
Platinum: Futures fell 0.1% to $943.65 an ounce.
Copper: Prices declined as concerns over China’s economic outlook re-emerged, with benchmark copper futures down 0.3% to $9,026.50 a tonne.
Middle East tensions:
Reports of a possible ceasefire between Israel and Lebanon further dampened safe-haven demand for gold. At the start of the year, escalating conflicts in the Middle East had supported gold prices, but that effect has faded as tensions have eased.
Gold continues to be affected by geopolitical events and economic uncertainties. While trade and political tensions add to its safe-haven allure, a strong dollar remains a key limiting factor.