LIVE UPDATES: Fed Chair Jerome Powell to deliver major speech at Jackson Hole
Investing.com-- Gold prices jumped in Asian trade on Tuesday, lifted by safe-haven demand amid uncertainty over U.S. trade negotiations ahead of President Donald Trump’s July 9 tariff deadline, while a weaker dollar provided additional support.
Spot Gold rose 0.8% to $3,328.71 an ounce, while Gold Futures for August jumped 1% to $3,339.70/oz by 02:10 ET (06:10 GMT).
Bullion rose 1.5% a day earlier, and was set to cover most of the ground it lost last week due to the Israel-Iran ceasefire.
Investors flock to safe-haven assets ahead of tariff deadline
Gold prices rose as investors looked out for trade deals ahead of President Trump’s July 9 tariff deadline.
A 90-day pause in tariff enforcement that began on April 2 is set to expire next week, with the U.S. having secured only two trade deals so far — with China and the UK.
Countries failing to reach trade deals before the deadline face the reimposition of reciprocal tariffs as high as 50%.
A Financial Times report on Tuesday stated that U.S. trade officials are pivoting to narrower trade agreements in a bid to secure quick wins ahead of the deadline. The report also said that the administration is still considering tariffs on key sectors.
Meanwhile, Trump threatened to impose fresh tariffs against Tokyo, while Treasury Secretary Scott Bessent said that nations may still face steep tariff hikes even amid ongoing good-faith negotiations. Bessent added that he expects a flurry of deals ahead of the deadline.
Investor concerns over uncertain trade outcomes and the risk of new sectoral tariffs drove a shift toward safe-haven assets.
Metal markets rise on weaker dollar
The US Dollar Index remained subdued in Asian trading hours, still hovering near three-year lows.
Silver Futures rose 0.4% $36.00 per ounce, while Platinum Futures fell 0.4% to $1,360.45.
Meanwhile, benchmark Copper Futures on the London Metal Exchange rose 0.2% $9,839.95 a ton, while U.S. Copper Futures jumped 1.2% to $5.1145 a pound.
Gains in the red metal were also supported by a private survey showing unexpected growth in China’s Caixin PMI for June, as improved trade conditions boosted sentiment in the world’s largest copper importer.