Gold prices rose slightly in Asian trade on Thursday but stayed confined within a tight range, while U.S. copper futures extended their rally after President Donald Trump reaffirmed plans for steep tariffs on the red metal.
The modest movement in gold reflects a delicate balance between a softening dollar, Federal Reserve rate-cut uncertainty, and diminished haven demand due to geopolitical de-escalation.
Spot gold rose 0.3% to $3,323.72/oz, and September gold futures climbed 0.3% to $3,332.45/oz by early Thursday. However, the precious metal remained locked within a $3,300–$3,450 range, a pattern driven by:
Mixed Fed signals: June FOMC minutes showed policymakers support rate cuts, but timing remains unclear.
Tariff-induced inflation fears: Several Fed members expressed concern that Trump’s tariffs may raise inflation, complicating the timing of cuts.
Reduced haven demand: Calmer geopolitical tensions, especially in the Middle East, have limited safe-haven flows into bullion.
In contrast to gold, U.S. copper prices continued to rally, with futures climbing after Trump officially confirmed a 50% tariff on copper imports. The move is part of his broader trade strategy aimed at boosting domestic manufacturing.
U.S. copper futures surged 2.6% on Wednesday and extended gains early Thursday.
Tariff announcement has triggered front-loading of shipments and bets on tighter U.S. supply.
Domestic producers like Freeport-McMoRan (NYSE:FCX) stand to benefit if tariffs are implemented.
Outside the U.S., London Metal Exchange copper futures slid due to fears of weaker import demand and lingering macro pressure from China’s mixed inflation data.
While gold remains subdued, silver and platinum are outperforming:
Platinum futures rose 0.3% to $1,387.60/oz
Silver futures gained 0.2% to $36.710/oz
Both are near multi-year highs, driven by industrial demand and tailwinds from EV and solar sectors.
The global metals market is navigating a volatile mix of macro uncertainty, trade policy risks, and shifting Fed rhetoric. Gold remains cautious but resilient, while copper is surging on protectionist policies that could reshape supply chains.
Short-term traders should watch for tariff deadlines (August 1), Fed speak, and global CPI data to identify breakout moves.
