Gold prices rose to an 11-week high in Asian trading on Wednesday, marking a third consecutive day of gains as demand for safe-haven assets increased amid concerns over U.S. tariff policies under President Donald Trump.
Spot Gold climbed 0.2% to $2,749.29 per ounce, reaching its highest point since early November, while Gold Futures for February delivery also rose 0.2%, reaching $2,766.57 per ounce by 01:45 ET (06:45 GMT).
The yellow metal is on track for a third straight day of gains, as traders remain cautious, trying to assess the potential impact of Trump’s policies, which are anticipated to drive inflation. Gold is often viewed as a hedge against inflation.
The dollar sharply declined on Monday after Trump refrained from providing specifics on U.S. trade tariffs, which helped support gold prices.
Gold, a traditional safe-haven asset, has stayed above a one-month high since last week, reflecting market concerns over global uncertainty. Trump’s policy and tariff announcements are expected to have a significant impact on market conditions.
Trump stated on Tuesday that he is considering imposing 10% tariffs on Chinese imports starting February 1 and also plans to impose tariffs on the European Union.
The anticipated tariff increases could lead to smaller trade imbalances and higher inflation, which are both typically seen as beneficial for the dollar.
A stronger dollar usually pushes gold prices lower by making the metal more expensive for buyers using other currencies.
The US Dollar Index rose 0.2% in Asian trading on Wednesday, following a mostly unchanged close the previous day. It had dropped over 1% on Monday after Trump refrained from announcing tariffs.
Traders are closely watching Trump’s actions to gauge their potential effect on the direction of gold prices.
Other precious metals remained largely unchanged on Wednesday. Platinum Futures held steady at $968.45 per ounce, while Silver Futures were flat at $31.51 per ounce.
Copper prices continue to slide due to tariff concerns
Copper prices declined further, maintaining their lackluster performance since Trump’s inauguration, as worries over potential U.S. tariffs and the possibility of a stronger dollar weighed on the metal.
Historically, copper prices have tended to drop during periods of escalating tariffs and trade tensions, primarily due to reduced demand from China, the largest global consumer of copper.
Benchmark Copper Futures on the London Metal Exchange fell 0.6% to $9,232.50 per ton, while February Copper Futures dropped 0.9% to $4.3015 per pound.
