Gold Prices Steady as Trump Tariffs Rattle Markets

Image Credit: Reuters

Gold prices remained stable in Asian trading on Tuesday, supported by safe-haven demand following the implementation of U.S. President Donald Trump's tariffs on Mexico and Canada.

Spot gold stayed steady at $2,892.98 per ounce, while gold futures for April delivery rose 0.1% to $2,903.87 an ounce at 00:23 ET (05:23 GMT).

Gold Holds Firm as Trump Tariffs on Mexico, Canada Take Effect

On Tuesday, Trump’s administration imposed 25% tariffs on imports from Mexico and Canada, a move aimed at addressing concerns over illegal immigration and drug trafficking. Additionally, Trump raised tariffs on Chinese goods to 20%, up from 10%, which had been initially imposed in February.

In retaliation, China announced 15% tariffs on several U.S. agricultural products and added 15 U.S. companies to an export control list, with new measures set to begin on March 10.

The tariffs have led to significant declines in global equity markets, with major indices like Japan’s Nikkei 225 and Hong Kong’s Hang Seng suffering notable losses. In the U.S., the Dow Jones fell 1.5%, the NASDAQ dropped 2.6%, and the S&P 500 lost 1.8% on Monday.

Despite the market downturn, gold held steady, continuing to attract investment as a safe-haven asset during periods of economic uncertainty.

Other precious metals were also stable, with the U.S. dollar showing little movement. Platinum futures edged down 0.1% to $969.20 per ounce, while silver futures slipped 0.2% to $32.269 an ounce.

Copper Prices Slide Amid Tariff Concerns; China’s Parliamentary Meeting in Focus

Copper prices dropped slightly on Tuesday, with Trump’s tariffs impacting the metal. Investors are also watching China’s upcoming "Two Sessions" parliamentary meetings for any hints on economic stimulus measures to support domestic demand. Increased infrastructure spending in China, the world’s largest copper consumer, could significantly boost copper demand.

Benchmark copper futures on the London Metal Exchange fell 0.2% to $9,395.45 per ton, while April copper futures remained unchanged at $4.895 per pound.

 

 

 

 

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