Gold prices rebounded from one-month lows in Asian trade on Thursday as trade tariff jitters intensified ahead of President Donald Trump’s looming deadline, stoking safe‑haven demand.
Gains were capped as the Federal Reserve held rates steady as expected and signaled that a September rate cut was unlikely.
Spot Gold rose 0.8% to $3,301.21 an ounce, while Gold Futures were largely unchanged at $3,352.70/oz by 02:08 ET (06:08 GMT).
Gold prices hit a one-month low on Wednesday after the Federal Reserve maintained its hawkish stance despite President Trump’s ire.
Gold rebounds on tariff jitters Markets were focused on a looming August 1 deadline for new tariff rates set by President Donald Trump, as he intensified trade-related action on Wednesday.
Trump announced a trade deal with South Korea that will impose a 15% tariff on imports. India faces a 25% tariff on its exports to the U.S. starting Friday and is yet to reach a trade deal, while Brazilian goods are subject to duties as high as 50%.
A Politico report stated that Trump will sign executive orders on Thursday imposing higher tariffs on countries that have failed to reach trade deals.
Heightened tariff uncertainty prompted a renewed rush into safe‑haven assets like gold, erasing some of the earlier losses tied to easing trade tensions.
Markets had briefly relaxed as signs of trade progress emerged with U.S.‑EU and U.S.‑Japan deals ahead of the deadline.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Markets scale back Fed rate cut bets The Federal Reserve held interest rates steady at 4.25%–4.50% on Wednesday in a 9‑2 vote. Fed’s outlook dampened expectations for a rate cut in September as Chair Jerome Powell offered no timeline for easing.
Meanwhile, dissenting votes from Governors Michelle Bowman and Christopher Waller signaled internal debate.
Markets have largely pushed back expectations of a cut until later in 2025.
Dimming hopes for near-term rate cuts capped gains, as gold offers no yield and becomes less attractive when interest rates remain high.
US copper prices plunged on 50% targeted tariff Benchmark Copper Futures on the London Metal Exchange fell 0.3% to $9,683.15 a ton, while U.S. Copper Futures saw a sharper decline of 4.2% to $4.43 a pound.
US copper prices plunged 19% on Wednesday after President Trump excluded refined metal from his planned 50% import tariff. The 19% fall was the largest ever intraday decline.
Starting August 1, a 50% tariff will apply to semi-finished copper products and copper-heavy goods, but not to copper ores, concentrates, or cathodes.
“Trump’s first musings of a tariff on copper imports back in January unleashed record shipments of the metal to American ports,” ING analysts said.
“There is now an excess inventory in the US, and that stockpile might now be re-exported,” they added.
In other metal markets, Platinum Futures rose 1.8% to $1,339.05/oz, while Silver Futures declined 1.4% to $37.218 per ounce.
