Gold prices surge as trade tensions escalate, while copper prices fall on China tariff concerns

From Financial Modeling Prep: 2025-04-09 09:35:00

Gold prices surged in Asian trading due to escalating trade tensions and a weakening dollar. Spot gold reached $3,031.02 per ounce, while June gold futures rose to $3,046.61 per ounce. The U.S. imposed a 104% cumulative tariff on Chinese imports, sparking safe-haven demand for gold.

Trade tensions intensified with the U.S. imposing aggressive tariffs on Chinese imports, leading to global market volatility. Gold prices rebounded as the U.S. dollar weakened, making gold more affordable for international buyers. This uncertainty has driven investors towards gold as a hedge against inflation risks and supply chain disruptions.

While gold rallied, copper prices fell on the London Metal Exchange. Benchmark copper futures dropped to $8,595.0 per ton, reflecting concerns over China’s industrial slowdown due to trade tensions. Rising tariffs on Chinese goods are expected to disrupt global copper demand and supply chains.

Gold remains a safe-haven asset amid trade tensions and inflation fears, with a weakening U.S. dollar. In contrast, copper prices signal vulnerabilities in sectors reliant on global industrial activity, especially in China. Investors can track commodity price fluctuations, including gold and copper, to navigate market uncertainties and make informed decisions.



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