Gold Prices Hold Steady Amid U.S.-China Trade Tensions

Gold prices maintained a steady upward trajectory in Asian trade on Thursday, staying close to their record highs as fears surrounding the U.S.-China trade war continue to fuel demand for safe-haven assets.

Gold Market Update

• Spot Gold: $2,869.17 (+0.1%)
• Gold Futures (April): $2,887.90 (-0.2%)
• Record High: $2,882.53 (hit on Wednesday)

Gold Prices Driven by Trade War Fears

• Safe-Haven Demand: Fears of an escalating U.S.-China trade war have kept gold prices elevated.
  • U.S. Tariff: A 10% tariff on Chinese goods imposed by President Trump.
  • Retaliation from China: Beijing responded with its own tariffs, increasing concerns about a prolonged trade conflict.
• Trump’s Comments: Recent statements on the U.S. taking over Gaza further heightened demand for safe-haven assets like gold.
• JPMorgan Forecast: Analysts warned of further trade war escalation, predicting that Trump could eventually implement his proposed 60% tariffs on China.

Gold Outlook Amid Rising U.S. Inflation

• Inflation Impact: The rise in U.S. tariffs could lead to higher inflation, potentially keeping interest rates elevated for longer, which might limit gold’s long-term gains.
• Dollar Influence: A weaker dollar supported gold prices, but further interest rate hikes could exert downward pressure on the yellow metal.

Other Precious Metals Performance

• Platinum Futures: $1,021.30 (+0.2%)
• Silver Futures: $32.708 (-0.8%)

Focus on U.S. Nonfarm Payrolls Data

• U.S. Jobs Report: Investors are closely monitoring upcoming nonfarm payrolls data, with any signs of a resilient labor market likely to support the dollar and pressure metal prices.

Copper Prices Boosted by Trade Relief and Stimulus Bets

• Copper Futures:
  • London Metal Exchange (LME): $9,341.70 (+0.8%)
  • March Copper Futures: $4.4985 (+1.4%) (over 3-month high)
• Market Drivers:
  • Relief from tariff delays on Canada and Mexico helped buoy copper prices.
  • China stimulus expectations continued to support copper prices, with traders hoping for more economic stimulus from Beijing to mitigate the effects of the ongoing trade war.

Outlook for Precious and Industrial Metals

Copper remains buoyed by tariff relief and stimulus bets but could face volatility depending on future trade negotiations and China’s economic policies.

Gold and Platinum are expected to remain supported by trade war fears and inflationary pressures.

Silver is underperforming but may find support if gold continues to rise.