Gold prices fall as investors favor stronger U.S. dollar over geopolitical tensions

Gold prices dipped in Asian trade despite rising geopolitical tensions, as investors favored the stronger U.S. dollar. Spot gold fell 0.2% to $3,294.88/oz, while gold futures slipped 0.4% to $3,303.20/oz. Trump’s tariffs and positive labor market data influenced the market.

Despite Trump’s tariffs, gold failed to attract safe-haven flows, with traders anticipating a stronger dollar post-upbeat U.S. jobs data. The Federal Reserve warns of inflation risks from tariffs, impacting rate cut expectations. Other metals weakened, but U.S. copper futures rose following Trump’s proposed tariffs.

Platinum futures fell 1.1% to $1,376.35/oz, while silver futures were slightly higher at $36.838/oz. U.S. copper futures gained amid Trump’s tariff proposal on imported copper. London Metal Exchange copper futures fell 1.6% to $9,644.45/ton due to fears of reduced U.S. import demand and mixed Chinese inflation data.

Gold’s lack of rally in trade uncertainty highlights currency and yield dynamics’ influence. Copper’s focus shifts to supply chain restructuring, potentially benefiting U.S. producers post-tariffs. Expect divergence in U.S. and global metal prices if Trump enforces copper tariffs, impacting Q3 investor decisions.