Gold Prices Steady Amid Dollar Weakness and Trade Policy Uncertainty
Gold prices held firm in Asian trading on Friday, appearing set for weekly gains as the U.S. dollar remained near a four-month low. This stability in gold pricing comes as investors navigate a climate of trade policy uncertainty and await the release of a key employment report later in the day.
As of 01:26 ET (06:26 GMT), gold was largely unchanged at $2,913.57 per ounce. However, April futures gained 0.1%, reaching $2,920.55 an ounce. Throughout the week, gold has shown resilience, on track for an impressive close with nearly a 2% increase in value. The dollar’s decline against major currencies has made gold, which is priced in dollars, more appealing to investors, fostering a safe-haven demand.
Trade Policy Developments and Market Reactions
Earlier this week, President Trump intensified trade tensions by enforcing a 25% tariff on Canadian and Mexican goods and increasing tariffs on Chinese imports to 20%. Although he softened his stance just two days later by delaying the 25% tariffs on Mexican and Canadian goods under the United States-Mexico-Canada Agreement (USMCA) until April 2, the very nature of these announcements has contributed to market volatility and uncertainty regarding U.S. trade policies.
Gold is typically seen as a secure investment during times of economic uncertainty, and ongoing challenges with trade policy may further underpin its price stability.
Caution in Anticipation of Employment Report
Market participants are exhibiting caution ahead of the U.S. employment data scheduled for release later on Friday. This report will likely provide crucial insights that could inform the Federal Reserve’s future interest rate decisions, especially in light of recent inflation data that seems to support a more hawkish stance from the Fed.
Subdued Precious Metals and Copper Market Trends
Alongside gold, other precious metals were subdued in trading. Silver remained flat at $982.10 an ounce, while platinum fell 0.4% to $33.198 an ounce.
Meanwhile, copper experienced a retreat after reaching a three-week high in the previous session. President Trump indicated in a recent congressional address that tariffs on copper imports were already in effect and had signed an executive order to investigate whether these imports pose a national security threat—a process that could lead to further tariffs.
Adding to the negative sentiment, Friday’s data showed that Chinese exports and imports were weaker than anticipated for the first two months of 2025. Despite this, investors are keenly eyeing potential policy measures from China’s ongoing annual parliamentary meeting, which may support infrastructure and manufacturing—key sectors that influence copper demand.
Benchmark copper prices on the London Metal Exchange fell 0.7%, trading at $9,639.25 a ton, whereas April copper contracts saw a slight uptick, reaching $4.7875 a pound.
As market developments unfold, the interplay between economic policies, currency fluctuations, and global demand will remain crucial in shaping commodity prices in the weeks ahead.
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