Investing.com– Gold prices rose in Asian trading on Tuesday as the dollar weakened sharply overnight, while traders tried to assess U.S. President Donald Trump’s policies following his inauguration.
rose 0.3% to $2,727.39 per ounce, while expiring in February gained 0.4% to $2,743.57 an ounce by 01:28 ET (06:28 GMT).
Bullion rises due to ‘safe-haven’ shine amid uncertainty
Gold traders are bracing for increased volatility as Trump begins his second term, with his anticipated policy announcements expected to influence market dynamics.
The precious metal, traditionally viewed as a safe-haven asset, has maintained its price above a one-month peak.
Market sentiment is currently shaped by the interplay between potential U.S. policy shifts and the Federal Reserve’s monetary stance.
Trump has vowed to impose new trade tariffs on its neighboring countries, and China to bring down its trade deficit. This could provide renewed strength to the dollar, thereby affecting gold prices.
The fell more than 1% overnight but rebounded later in Asia hours, rising 0.3%.
A weaker dollar typically drives gold prices higher because it makes the metal cheaper for buyers using other currencies.
Traders are closely monitoring Trump’s moves to assess their impact on gold’s trajectory.
Other precious metals were mixed on Tuesday. were 0.4% lower at $958.80 an ounce, while rose 0.6% to $31.30 an ounce.
Copper remains under pressure as tariff concerns weigh
Among industrial metals, copper prices were subdued as a combination of anticipated U.S. tariffs, prospects of a stronger dollar, and investor caution after Trump’s inauguration, weighed on the red metal.
During periods of escalating tariffs and trade tensions, such as in mid-2018 and mid-2019, copper prices declined sharply as investors anticipated reduced demand from China, the world’s largest copper consumer.
Benchmark on the London Metal Exchange were largely muted at $9,255.50 a ton, while February fell 0.6% to $4.2910 a pound.
