Gold prices edged higher on Thursday in Asian trading as the U.S. dollar slipped to a four-month low following signs that President Donald Trump may reconsider the recently imposed trade tariffs.
Spot gold increased by 0.1%, reaching $2,921.42 per ounce, while April gold futures also rose by 0.1%, settling at $2,929.49 per ounce by 01:15 ET (06:15 GMT).
Dollar Drops Amid Trump’s Delay on Auto Tariffs
Gold’s advance was driven by a 0.2% dip in the U.S. Dollar Index, which fell to a four-month low after Trump announced a delay in auto tariffs on Canada and Mexico by one month. The decision came after the tariffs took effect earlier this week.
The White House revealed on Wednesday that Trump was open to considering additional tariff exemptions, a move seen as a potential shift in his trade policy. The delay alleviated concerns of escalating trade tensions, contributing to the weakening of the dollar.
As gold is priced in dollars, the currency’s decline made the precious metal more attractive to investors. Furthermore, gold is often seen as a safe-haven asset during times of economic uncertainty, which has increased its appeal amid the shifting trade policies.
Caution Ahead of U.S. Payroll Data
Market participants were cautious ahead of the U.S. payroll data, scheduled for release on Friday. The report is expected to offer insight into the Federal Reserve’s potential interest rate decisions, particularly in light of recent inflation data that has supported the Fed’s hawkish stance.
Meanwhile, other precious metals showed mixed results. Platinum futures fell 1.1% to $973.76 per ounce, while silver futures rose 0.2% to $33.213 per ounce.
Copper Prices Hit Three-Week High Amid Dollar Weakness and Chinese Stimulus
Copper prices climbed to a three-week high on Thursday, bolstered by a weaker dollar and optimism surrounding China’s economic stimulus measures.
The London Metal Exchange’s benchmark copper futures gained 0.3%, reaching $9,611.05 per ton, marking their highest level since mid-February. April copper futures, however, fell by 0.7%, settling at $4.7718 per pound.
China Unveils Stimulus Measures to Boost Growth
Sentiment in the copper market was further boosted by China’s announcement of a new stimulus package aimed at supporting economic growth amid ongoing trade tensions with the U.S. At the National People’s Congress on Wednesday, China set an economic growth target of approximately 5%, raised the budget deficit to 4%, and unveiled plans to issue 1.3 trillion yuan ($179 billion) in ultra-long special treasury bonds.
Investors are particularly focused on potential measures to boost infrastructure and manufacturing, both of which are key drivers of copper demand.
The combination of a weaker dollar and China’s economic initiatives helped lift copper prices, offering a positive outlook for the metal despite ongoing trade uncertainties.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Qilu Bank Enhances Support for Small Businesses with Innovative Financial Tools
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
