Staff Reporter
Gold prices climbed to an 11-week high during Asian trading on Wednesday, marking the third consecutive day of gains as safe-haven demand surged amid concerns over potential tariffs from the Trump administration.
Spot gold increased by 0.2%, reaching $2,749.29 per ounce, the highest level since early November. Meanwhile, February gold futures also rose by 0.2%, hitting $2,766.57 an ounce by 01:45 ET (06:45 GMT).
Traders remain cautious, closely monitoring Trump’s policies, which are anticipated to drive inflation higher. Gold is often viewed as a reliable hedge against inflation.
The dollar experienced a sharp decline on Monday after Trump refrained from providing specifics on U.S. trade tariffs, which further bolstered gold prices.
Bullion Supported by Safe-Haven Demand Amid Global Uncertainty
The precious metal, traditionally regarded as a safe-haven asset, has held its price above a one-month peak since last week. This stability reflects market apprehension over global uncertainty as President Trump’s policy announcements and potential tariff actions are expected to shape market dynamics.
On Tuesday, Trump indicated he is considering imposing 10% tariffs on Chinese imports starting February 1, while also pledging to target the European Union with tariffs.
These increased tariffs could lead to reduced trade imbalances and rising inflation, both of which are typically seen as favorable for the dollar. A stronger dollar usually drives gold prices lower, as it makes the metal more expensive for buyers using other currencies.
The U.S. Dollar Index rose by 0.2% during Asian trading on Wednesday, following a mostly unchanged close the previous day. It had dropped more than 1% on Monday after Trump refrained from announcing any tariffs.
Traders are closely watching Trump’s actions to evaluate their potential impact on gold prices.
Other precious metals showed little movement on Wednesday, with platinum futures steady at $968.45 an ounce and silver futures unchanged at $31.51 an ounce.
Copper Prices Decline Further Amid Tariff Concerns
Copper prices continued to slip following Trump’s inauguration, driven by fears of impending U.S. tariffs and the outlook for a stronger dollar weighing on the red metal.
Historically, during times of rising tariffs and trade tensions, copper prices have dropped due to decreased demand from China, the world’s largest consumer of copper.
On the London Metal Exchange, benchmark copper futures fell by 0.6% to $9,232.50 per ton, while February copper futures dropped by 0.9% to $4.3015 per pound.
