Gold prices edged up slightly in Asian trading on Tuesday as President-elect Donald Trump’s threats of increased trade tariffs spurred demand for safe-haven assets. However, gains were capped by a strengthening U.S. dollar, which rebounded toward its recent two-year high, making gold more expensive for holders of other currencies.
Spot gold rose 0.1% to $2,628.69 per ounce, and December gold futures climbed 0.4% to $2,653.75. The yellow metal had faced sharp losses earlier as reports of a potential ceasefire between Israel and Lebanon reduced geopolitical tensions, diminishing safe-haven demand.
Trump’s proposed tariffs—10% on imports from China and 25% on Canada and Mexico—heightened fears of a renewed global trade war. The measures, aimed at curbing illegal immigration and drug trafficking, drew strong criticism from China, raising the prospect of retaliatory actions and adding to market uncertainty.
Other precious metals showed mixed performance, with silver gaining 0.5% to $30.823 per ounce, while platinum dipped 0.1% to $943.65. Industrial metals like copper also declined, reflecting concerns over China’s economic outlook.
Meanwhile, easing tensions in the Middle East, as reports suggested a ceasefire between Israel and Hezbollah, further limited gold’s upward momentum. Gold had earlier benefitted from safe-haven buying amid conflicts between Russia and Ukraine, with Moscow threatening nuclear retaliation for Kyiv’s use of Western-made long-range missiles.
