Investing.com-- Gold prices edged lower in Asian trading on Wednesday as the U.S. dollar ticked up, though escalating trade tensions following President Donald Trump’s tariff announcements kept losses in check due to sustained safe-haven demand.
Spot Gold inched 0.2% lower $2,912.0 per ounce, while Gold Futures expiring in April gained 0.1% to $2,922.72 an ounce by 23:28 ET (04:28 GMT).
Trump reiterates tariff threats in Congress speech; dollar ticks up
Trump imposed 25% tariffs on Canadian and Mexican goods on Tuesday and raised tariffs on Chinese imports to 20%.
In response, Canada imposed 25% tariffs on C$30 billion worth of U.S. imports, while China levied 15% on U.S. agricultural goods like chicken and wheat and 10% on soybeans and pork.
In his congressional speech, Trump reaffirmed plans for reciprocal tariffs, set to take effect on April 2. The move could further escalate trade tensions.
These tariffs are expected to strengthen the dollar, as investors seek the relative safety of the world’s primary reserve currency amid global economic uncertainty.
The US Dollar Index rose 0.1% in Asian trading but remained near its three-week low.
A stronger dollar typically exerts downward pressure on gold prices, making the precious metal more expensive for holders of other currencies.
Despite this, gold has demonstrated resilience, buoyed by its traditional role as a safe-haven asset during periods of political and economic instability.
The yellow metal’s appeal was further enhanced by concerns over potential inflationary effects stemming from the tariffs.
As a result, gold prices experienced only marginal declines on Wednesday.
Other precious metals were largely higher. Platinum Futures edged up 0.2% to $973.35 an ounce, while Silver Futures gained 0.7% to $32.60 an ounce.
Copper gains on China stimulus hopes as ’Two Sessions’ kicks off
Copper prices edged higher on Wednesday as hopes for fresh economic stimulus from China lifted sentiment, with the country’s annual parliamentary meetings, known as the "Two Sessions," underway.
Investors anticipate potential policy measures to boost infrastructure and manufacturing, key sectors for copper demand.
Benchmark Copper Futures on the London Metal Exchange inched 0.3% higher to $9,391.70 a ton, while Copper Futures expiring in April jumped 1.1% to $4.6290 a pound.