Gold Holds Near Three-Month Highs as Dollar Weakens; Copper Declines on Tariff Concerns

Gold prices remained steady on Thursday, hovering near three-month highs, as the U.S. dollar softened following President Donald Trump’s cautious approach to implementing tariffs early in his second term.

Gold Market Highlights

• Spot Gold: Unchanged at $2,755.14, near its highest level since late October.
• Gold Futures (Feb): Down 0.3% to $2,763.39 an ounce by 01:35 ET (06:35 GMT).

Safe-Haven Appeal and Inflation Concerns

Gold’s three-day rally earlier this week was driven by safe-haven demand amid uncertainty surrounding Trump’s trade policies. His tariff plans, expected to elevate U.S. inflation, continue to support gold prices as the metal is traditionally viewed as a hedge against inflation.

Weak Dollar Supports Gold Prices

• The U.S. Dollar Index remained slightly weaker in Asian trade, following a sharp decline on Monday.
• Trump’s hesitation in implementing tariffs has pressured the dollar, indirectly supporting gold prices.
• The market anticipates higher U.S. inflation and gradual implementation of tariffs, both of which could impact the dollar’s trajectory.

A weaker dollar benefits gold, making it more affordable for international buyers.

Other Precious Metals

• Platinum Futures: Fell 0.7% to $964.30 an ounce.
• Silver Futures: Declined 0.6% to $31.218 an ounce.

Copper Prices Decline Amid Tariff Fears

Copper prices continued to slide as investors weighed the potential economic impact of Trump’s tariff plans.

Market Impact

• LME Benchmark Copper Futures: Fell 0.8% to $9,167.50 a ton.
• February Copper Futures: Dropped 0.9% to $4.2568 a pound.

China’s Role in Copper Demand

• Concerns over reduced demand from China, the largest consumer of copper, are exacerbating the decline.
• Tariff-related economic strain, coupled with slowing industrial production in China, raises fears of weaker global demand for industrial metals.

Market Outlook

While gold prices remain supported by safe-haven demand and inflation concerns, the market will closely monitor Trump’s tariff decisions and their broader economic implications. For industrial metals like copper, prolonged uncertainty over U.S.-China trade relations and slowing global growth may continue to exert downward pressure.