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Gold prices dipped modestly in Asian trading on Tuesday, but remained within striking distance of record highs, as safe-haven demand held firm amid ongoing U.S.-China trade tensions and growing fears of a global economic slowdown.
As of 01:51 ET (05:51 GMT):
- Spot gold was down 0.4% at $3,224.60 per ounce
- Gold futures (June delivery) held steady at $3,240.85 per ounce
Trade War Uncertainty Supports Gold
While gold edged lower following a temporary boost in risk sentiment—fueled by President Donald Trump’s exemptions for electronics imports—the overall macro backdrop remained supportive of bullion.
- Trump’s 145% tariffs on China and Beijing’s 125% retaliatory duties are still largely intact, reinforcing concerns of deepening geopolitical and trade-related instability
- Trump also signaled more exemptions could be on the table, but upcoming tariffs on electronics and pharmaceuticals are expected to stir fresh volatility
Recession Fears Add to Bullion’s Appeal
Investors are increasingly pricing in the risk of a U.S. recession, especially with trade disruptions threatening to dampen business activity and consumer confidence. Although those fears briefly eased after Trump’s 90-day tariff exemptions, expectations have resurfaced as the President prepares new sector-specific duties.
The ongoing selloff in U.S. Treasuries and a weaker dollar have also boosted gold’s appeal, particularly among international buyers.
Gold remains just below its record high of $3,245.69/oz, set earlier this month.
Other Precious Metals See Modest Gains
After lagging behind gold for much of the recent rally, other precious metals edged higher on Tuesday:
- Platinum futures were steady at $956.60/oz
- Silver futures rose 0.2% to $32.225/oz
Copper Weakens as China Demand Outlook Dims
Among industrial metals, copper prices extended losses as concerns over Chinese demand and the impact of tariffs continued to weigh on the market.
- LME Copper Futures fell 0.2% to $9,168.65 per ton
- U.S. Copper Futures declined 0.8% to $4.6230 per pound
Monday’s data showed a 1.4% drop in China’s copper imports in March, as speculative buying in U.S. markets redirected shipments.
“The trade war has disrupted copper flows and raised concerns about Chinese consumption,” said analysts. “Slowing GDP forecasts only add to bearish sentiment.”
China GDP in Focus This Week
Market participants are closely watching for more economic signals from China, especially the release of first-quarter GDP figures on Thursday. The data will be key to assessing how much the trade war is impacting the world’s second-largest economy and top commodity importer.
Outlook: Gold Eyes Breakout, Copper Faces Pressure
- Gold is likely to remain well-supported near current levels, especially if Trump announces new tariffs or China retaliates, escalating risk-off sentiment
- Copper and other industrial metals may continue to face downward pressure amid weakening Chinese demand and growing concerns about global manufacturing slowdowns
Traders will be monitoring:
- Tariff updates from Washington
- China’s economic data
- Fed commentary later this week, especially Chair Powell’s remarks on Wednesday
These factors could further influence both risk sentiment and commodity flows in the days ahead.
