Gold prices experienced a slight decline in Asian trade on Wednesday, as traders took profits and awaited further clarification on U.S. President Donald Trump’s plans to impose increased trade tariffs.
In the industrial metals sector, copper faced significant volatility. After reaching nine-month highs earlier in the session, copper prices fell sharply following reports that the U.S. president may soon impose tariffs on the metal.
Broader metal prices also retreated, with market attention focused on key U.S. economic data set to be released this week. These reports are expected to provide insight into the health of the U.S. economy and whether economic growth is slowing.
Despite the pullback, gold prices remained above the $3,000 per ounce mark, nearing the record highs seen in March. Demand for safe-haven assets, although showing some recent fluctuations, largely remained resilient.
As of 00:29 ET (04:29 GMT), spot gold fell by 0.1% to $3,015.73 per ounce, while gold futures for May delivery dropped 0.2% to $3,048.25 per ounce.
Gold’s Resilience Amid Trade and Economic Concerns
Gold demand has remained relatively strong, with markets continuing to navigate a range of uncertainties. Trump, in a Tuesday interview with Newsmax, made vague comments about his tariff plans. He indicated that he would seek limited exemptions on his proposed tariffs but suggested he would adopt a more lenient approach rather than a strict one.
Trump is expected to announce reciprocal tariffs against at least 15 major U.S. trading partners on April 2, which he has dubbed “liberation day.” However, due to his recent back-and-forth on tariffs with Canada and Mexico, markets remain uncertain about the specifics and potential impacts of his agenda.
In addition to tariffs, traders are focusing on U.S. economic data for more insights. Durable goods data is due later on Wednesday, followed by a revised estimate of fourth-quarter GDP. The Federal Reserve’s preferred inflation gauge, the PCE price index, will be released on Friday. Several Fed officials are also scheduled to speak in the coming days.
Among other precious metals, platinum futures fell by 0.5% to $970.00 per ounce, while silver futures declined 0.2% to $34.123 per ounce.
Copper Prices Whipsaw Amid Trump’s Tariff Threats
Copper futures on the London Metal Exchange (LME) fell by 1.5%, trading at $9,962.12 per ton, while May copper futures held steady at $5.2440 per pound. Earlier in the session, LME copper prices surged to a nine-month high of $10,168.70 per ton after Bloomberg reported that Trump might impose tariffs of up to 25% on copper within weeks, well ahead of the previously set 270-day deadline.
Copper prices initially rose sharply, driven by expectations that tariffs would significantly disrupt U.S. copper supplies. Additionally, smelter closures in China are anticipated to further tighten global copper supplies, adding to the uncertainty in the market.
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