Gold prices shine on safe-haven demand as traders try to gauge Trump’s policies By Investing.com
Investing.com – Gold prices rose in Asian trading on Tuesday as the dollar weakened sharply overnight as traders tried to gauge US President Donald Trump’s policies following his inauguration.
were up 0.3% at $2,727.39 an ounce, while February expirations were up 0.4% at $2,743.57 an ounce by 01:28 ET (0628 GMT).
Gold bullion rises on ‘safe haven’ glow amid uncertainty
Gold traders are bracing for increased volatility as Trump begins his second term, and his expected policy announcements are expected to weigh on market dynamics.
The precious metal, traditionally considered a safe-haven asset, held its price above a one-month high.
Market sentiment is currently shaped by the interplay between potential US policy changes and the Federal Reserve’s monetary stance.
Trump has promised to impose new trade tariffs on his neighboring countries, and China to reduce its trade deficit. This could strengthen the dollar again, thereby affecting gold prices.
It fell more than 1% overnight but bounced back later in Asia, rising 0.3%.
A weaker dollar usually boosts gold prices because it makes the metal cheaper for buyers using other currencies.
Traders are closely watching Trump’s moves to gauge their impact on gold’s trajectory.
Other precious metals were mixed on Tuesday. were 0.4% lower at $958.80 an ounce, while they were up 0.6% at $31.30 an ounce.
Copper remains under pressure due to concerns about tariffs
Among industrial metals, copper prices were lower as a combination of expected US tariffs, the prospect of a stronger dollar and investor caution following Trump’s inauguration weighed on the red metal.
During periods of escalating tariffs and trade tensions, such as mid-2018 and mid-2019, copper prices fell sharply as investors anticipated reduced demand from China, the world’s largest consumer of copper.
Benchmarks on the London Metal Exchange were mostly down at $9,255.50 a tonne, while February fell 0.6% to $4.2910 a pound.
