Gold prices fall, US copper rises amid Trump tariffs

Gold prices in Asia fell amid uncertainty over US trade tariffs and future monetary policy. Meanwhile, copper in the US rose to record levels after Trump announced a possible 50% import duty. This was reported by Investing, writes UNN.

DetailsGold prices fell in Asian trading on Wednesday, showing limited demand for safe-haven assets as uncertainty over US trade tariffs and interest rates prompted traders to move into the dollar.

Copper prices in the US stood out among major metals, reaching record highs after President Donald Trump threatened to impose a 50% tariff on imports of the red metal.

Copper futures in London fell on Tuesday and Wednesday.

A broader range of metals also fell, pressured by a strengthening dollar, which largely maintained its recovery from recent three-year lows.

Spot gold price fell 0.2% to $3,294.88 per ounce, while gold futures for September delivery fell 0.4% to $3,303.20 per ounce as of 04:55 Moscow time.

Gold and metal prices under pressure due to dollar recovery

Gold remained near its lowest level in nine days, as uncertainty over Trump’s trade tariffs did not lead to an increase in demand for the “yellow” metal as a safe-haven asset, as it had previously.

Traders preferred the significantly depreciated dollar, which continued its recovery from recent lows amid growing expectations that the Federal Reserve would not cut the key rate anytime soon after strong employment data last week.

Uncertainty over Trump’s tariffs also supported dollar demand, as the president began sending letters this week indicating tough tariffs against several leading economies.

The Fed warned that Trump’s tariffs at planned levels could cause US inflation to rise, reducing the likelihood of interest rate cuts in the coming months.

The strengthening dollar pressured metal prices overall, with the precious metals sector becoming more vulnerable to profit-taking after strong gains in June.

Platinum and silver prices fell slightly this week after reaching multi-year highs in June. Platinum futures fell 1.1% to $1,376.35 per ounce, while silver futures rose slightly to $36.838 per ounce.

US copper prices hit record highs due to Trump’s tariff threat

US copper futures rose 2.6% to $5.6457 per pound on Wednesday, after reaching a record high of $5.8955 per pound on Tuesday.

Prices for the red metal in the US rose mainly on expectations of tighter domestic supplies, after Trump threatened to impose a 50% tariff on copper imports. Such a move could significantly benefit domestic copper producers, the largest of which is Freeport-McMoRan (NYSE: FCX).

Trump stated that the goal of this decision is to strengthen domestic copper production and reduce US dependence on imports of this metal. Copper is attracting increasing attention due to its key role in power transmission and electric vehicle production – key elements of the transition to green energy.

However, outside the US, copper prices fell due to fears of lower demand from American importers. Benchmark copper futures on the London Metal Exchange fell 1.6% to a nearly three-week low of $9,644.45 per tonne.

Concerns about softer demand in China, the largest importer, also weighed after mixed inflation data from the country.

Gold prices stabilize after rising amid uncertainty over Trump’s tariffs08.07.25, 09:32 • 1144 views