Gold prices rose slightly in Asian trade on Tuesday as threats of more trade tariffs from president-elect Donald Trump buoyed demand for safe havens, although a spike in the dollar limited any major metal gains.
The yellow metal was nursing steep losses from the prior session after multiple reports suggested that a ceasefire between Israel and Lebanon was close, which dented safe haven demand.
Spot gold rose 0.1% to $2,628.69 an ounce, while gold futures expiring in December rose 0.4% to $2,653.75 an ounce by 23:24 ET (04:24 GMT).
Trump tariff threat buoys haven demand
Trump threatened to impose a 10% import tariff on China, and a 25% import on Canada and Mexico, claiming the measures were to stem the alleged inflow of illegal immigrants and illicit drugs through the U.S. border countries.
His threats ramped up investor concerns over a renewed global trade war, especially with China. Trump had campaigned on promises of strict trade measures against Beijing.
China decried the threat, with the possibility of retaliation from Beijing also dampening risk appetite.
Still, bigger gains in gold were held back as the dollar surged after Trump’s announcement. The greenback came back in sight of a two-year high hit last week.
Other precious metals were also mixed, with platinum futures falling 0.1% to $943.65 an ounce, while silver futures rose 0.5% to $30.823.
Among industrial metals, copper prices retreated on the prospect of more economic headwinds for top importer China. Benchmark copper futures on the London Metal Exchange fell 0.3% to $9,026.50 a ton, while copper futures expiring in March fell 0.4% to $4.1453 a pound.
Gold skittish as M.East tensions ease
Safe haven for gold was limited by bets on easing tensions between Israel and Lebanese militant group Hezbollah, with multiple reports suggesting that a ceasefire was imminent.
Heightened tensions in the Middle East had been a key driver of gold gains earlier this year, especially after Israel and Iran attacked each other.
Gold was sitting on some gains from last week after increased tensions between Russia and Ukraine spurred haven demand. Moscow threatened nuclear retaliation for Kyiv’s use of Western-made, long-range missiles.
