Gold prices edge higher as tariff deadline nears; U.S. copper slumps

Investing.com -- Gold prices rose Thursday, rebounded from one-month lows as trade tariff jitters intensified ahead of President Donald Trump’s looming deadline, stoking safe‑haven demand.

At 04:45 ET (08:45 GMT), Spot Gold rose 1.1% to $3,309.30 an ounce, while Gold Futures were 0.3% higher to $3,361.17/oz. 

Gold rebounds on tariff jitters

Trump’s August 1 deadline for new tariff rates is looming large, creating a degree of uncertainty. 

The U.S. president announced a trade deal with South Korea on Wednesday, that will impose a 15% tariff on imports. 

However, India faces a 25% tariff on its exports to the U.S. starting Friday and is yet to reach a trade deal, while Brazilian goods are subject to duties as high as 50%. 

A Politico report stated that Trump will sign executive orders on Thursday imposing higher tariffs on countries that have failed to reach trade deals.

This heightened tariff uncertainty prompted a renewed rush into safe‑haven assets like gold, erasing some of the earlier losses tied to easing trade tensions.

Markets scale back Fed rate cut bets

Gold prices hit a one-month low on Wednesday after the Federal Reserve maintained its hawkish stance despite President Trump’s ire.

The Federal Reserve held interest rates steady at 4.25%–4.50% on Wednesday in a 9‑2 vote, with dissenting votes from Governors Michelle Bowman and Christopher Waller.

However, Chair Jerome Powell offered no timeline for easing, and markets have largely pushed back expectations of a cut until later in 2025.

Dimming hopes for near-term rate cuts capped gains, as gold offers no yield and becomes less attractive when interest rates remain high.

U.S. copper prices plunged on 50% targeted tariff

Benchmark Copper Futures on the London Metal Exchange fell 0.7% to $9,652.15 a ton, while U.S. Copper Futures saw a sharper decline of 21% to $4.3900 a pound after President Trump excluded refined metal from his planned 50% import tariff. 

Starting August 1, a 50% tariff will apply to semi-finished copper products and copper-heavy goods, but not to copper ores, concentrates, or cathodes.

“Trump’s first musings of a tariff on copper imports back in January unleashed record shipments of the metal to American ports,” ING analysts said.

“There is now an excess inventory in the U.S., and that stockpile might now be re-exported,” they added.

In other metal markets, Platinum Futures fell 3.4% to $1,327.65/oz, while Silver Futures declined 1.9% to $37.015 per ounce.

Ayushman Ojha contributed to this article