Gold Prices Edge Higher Amid U.S.-China Trade War Fears

Gold prices rose slightly in Asian trade on Tuesday, staying near record highs as safe-haven demand remained strong due to renewed U.S.-China trade tensions.

Market Movements

• Spot gold: Up to $2,815.35 per ounce, near record high of $2,831.70
• Gold futures (March): Down 0.4% to $2,846.64 per ounce
• Platinum futures: Down 0.1% to $1,002.05 per ounce
• Silver futures: Down 0.5% to $32.350 per ounce

What’s Driving Gold Prices?

1. Trade War Fears
   • Trump delayed 25% tariffs on Canada & Mexico for 30 days, but China faced a 10% tariff from Tuesday.
   • China retaliated with tariffs, export controls on metals, and an antitrust probe into Google (GOOGL).
2. Safe-Haven Demand
   • Investors flocked to gold amid escalating trade war risks.
   • China’s economic retaliation could further fuel uncertainty.
3. Dollar Strength Limits Upside
   • The U.S. dollar rebounded, curbing gold’s rally.
   • Higher U.S. tariffs → Increased inflation risk → Stronger dollar → Weaker gold.

Impact on Other Metals

• Industrial metals mixed:
  • Copper (LME): Up 0.2% to $9,150.15 per ton
  • April copper futures: Down 0.1% to $4.3250 per pound
• Traders watching China for possible economic support measures to counter U.S. tariffs.

Market Outlook

• Short-Term: Gold may stay near highs as trade war uncertainty lingers.
• Long-Term: Inflation & Fed rate outlook will determine gold’s next move.
• Key Watchpoints:
  • Further U.S.-China escalations
  • China’s economic stimulus response
  • U.S. inflation trends & Fed rate decisions