Gold prices rose in Asian trading on Tuesday as the dollar weakened, lingering near a four-month low amid mounting U.S. recession fears driven by President Donald Trump’s trade policies.
Investors were cautiously awaiting the U.S. consumer price index (CPI) data scheduled for release on Wednesday. This data could influence the Federal Reserve’s upcoming monetary policy decision, especially amid ongoing trade tariff uncertainties.
Spot Gold rose 0.4% to $2,900.17 per ounce, while Gold Futures expiring in April gained 0.2% to $2,904.50 an ounce by 02:36 ET (06:36 GMT).
Bullion gains on safe-haven appeal amid US recession risks
Trump’s administration has imposed 25% tariffs on imports from Mexico and Canada, with additional measures targeting China. These policies have raised concerns about potential economic slowdowns and rising inflation.
In an interview on Fox News last week President Trump refrained from predicting whether the U.S. might experience a recession in 2025 amid escalating trade tensions.
A Reuters poll showed that economic risks are mounting for Mexico, Canada, and the U.S. as businesses and policymakers grapple with uncertainty stemming from the chaotic implementation of Trump’s tariffs.
The likelihood of a recession is growing across all three nations, the survey found.
Amid these developments, gold remained supported due to its safe-haven demand.
The US Dollar Index fell 0.2% and hovered near a four-month low in Asia hours, making gold attractive for foreign investors.
The Fed is scheduled to meet on March 18-19 to decide on interest rates. Markets await the final crucial data point ahead of the meeting – February’s CPI data – to gauge the Fed’s rate outlook.
Other precious metals were largely subdued. Platinum Futures inched 0.3% lower to $961.20 an ounce, while Silver Futures gained 0.3% to $32.638 an ounce.
Copper rises on weaker dollar, China stimulus hopes
Copper prices rose on Tuesday as the greenback was weaker.
The red metal was also supported by expectations of economic stimulus from China as the National People’s Congress concluded its annual session.
Investors anticipate measures to bolster the slowing economy, potentially increasing demand for industrial metals like copper.
Benchmark Copper Futures on the London Metal Exchange rose 0.3% to $9,555.00 a ton, while Copper Futures expiring in April gained 0.5% to $4.6685 a pound.
