Gold prices stabilized on Thursday after hitting an all-time high following US President Donald Trump’s announcement of sweeping tariffs on imports. This prompted investors to turn to safe-haven assets.
Spot gold held steady at $3,130.21 per ounce, after hitting a record high of $3,167.57 earlier. However, some profit-taking followed, leading to a slight decline.
US gold futures fell 0.4% to $3,154.10. Despite this slight decline, gold continues to benefit from the momentum it gained last year. Prices have risen 19% through 2025, supported by a number of factors, including economic and geopolitical uncertainty, as well as increased purchases by central banks and exchange-traded funds. Independent analyst Ross Norman said, “The sweeping tariffs announced by Trump have created profound uncertainty in financial markets. Gold, as a safe haven, benefits from this.”
Economic Tensions and Gold’s Movement in Global Markets
Trump unveiled plans on Wednesday to impose a 10% tariff on most goods imported into the United States. In addition, higher tariffs will be imposed on dozens of allies and trade competitors. These measures have sparked widespread concern in global markets, amid concerns that they could lead to a decline in economic growth and an increase in inflation.
ANZ analysts stated that central bank purchases of gold, along with investment fund inflows, could push prices toward $3,200 per ounce in the coming months. However, the tariffs exempted some commodities, such as copper, gold, energy, and some metals that are not abundant in the United States, according to the White House. Gold inventories in the US Comex warehouses have recently increased amid concerns that the tariffs could affect shipments.
Other metal prices in the market: Silver, platinum, and palladium
It’s difficult to determine when gold prices will peak, but the momentum remains strong. Dip buying confirms that the underlying sentiment remains bullish.
Spot silver prices fell 2.7% to $33.12 per ounce, their lowest level in a week. Platinum prices also fell 1.5% to $969.25, while palladium fell 1% to $960.25.
Gold and Copper Outlook in Light of US Trade Policy
Gold prices continue their slight decline from their previous high. However, the precious metal remains at $3,100 per ounce, reflecting continued optimism among traders. This comes as investors assess the impact of Trump’s sweeping tariffs.
Concerns about the US economy due to the tariffs could lead to the Federal Reserve resuming interest rate cuts soon. This caused a sharp drop in US Treasury yields, which helped drive down the value of the US dollar, contributing to a reduction in the decline in gold prices.
Gold sales are affected by US market trends.
On Thursday, Trump imposed a 10% tariff on all imports, in addition to the high tariffs that will be imposed on some US trading partners. These developments sparked a wave of anxiety in the markets, amid fears of a trade war that could destabilize global trade. However, it remains unclear whether gold will continue to rise to new record highs or face a decline as economic events unfold.
These developments pushed demand for safe-haven assets higher. A massive sell-off in the US dollar also contributed to pushing gold prices to new record highs. Despite this, investors are awaiting developments in the US-China trade war.
Uncertainty about the economic future after the tariffs
Trump’s protectionist policies have eroded confidence in financial markets, amid strong expectations that this could lead to a US economic recession. Given the increasing likelihood of the Federal Reserve cutting interest rates in June, investors continue to focus on the impact of these policies on gold prices.
Gold and Copper Market Outlook in Light of Trade Developments
With increasing speculation about the impact of tariffs, investors are now anticipating the market’s course of action in the coming days. Experts expect gold and copper to experience opposing movements based on US government decisions, with the possibility of a “buy the rumors and sell the facts” scenario, reflecting the phenomenon that often occurs in financial markets.
Gold and Copper Markets: Are We Seeing a Rise or a Decline?
While gold has seen a significant increase in recent days, there are volatile movements in the markets. XAU prices are likely to continue rising temporarily due to concerns surrounding tariffs, but the market may experience some declines in the short term. Market Outlook as Political and Economic Conditions Evolve
Gold is known to be a safe haven asset that investors turn to during times of economic and political turmoil. Given the ongoing trade tensions between the United States and China. And expectations that the tariffs imposed by Washington will negatively impact economic growth, demand for gold is expected to remain strong in the near future. A potential escalation in the trade war could push gold prices higher. As investors prefer to hold gold as a hedge against inflation and market volatility.
Ultimately, it appears that market trends for XAU and copper will continue to be influenced by trade policy developments. The tariff measures announced by the United States could cause significant shifts in precious metals markets.
