Gold prices were largely steady in Asian trading on Friday, but were at a record peak after jumping in the previous session amid uncertainty around U.S. tariffs, while investors cautiously awaited a key U.S. inflation report.
Spot Gold was largely unchanged after hitting a record high of $2,799.60 per ounce, while Gold Futures expiring in February inched up 0.1% to $2,793.74 an ounce by 01:55 ET (06:55 GMT).
Trump reiterates tariff threats, bullion supported by safe-haven appeal
The recent escalation in U.S. trade policies under President Donald Trump has introduced considerable uncertainty into global markets.
His announcement of steep tariffs on imports from BRICS nations—Brazil, Russia, India, China, and South Africa—has heightened concerns over potential trade conflicts and their economic repercussions.
Trump also reiterated his vow to implement a 25% tariff on imports from Canada and Mexico starting February 1, with potential additional tariffs on Chinese goods.
The prevailing uncertainty has driven investors toward safe-haven assets like gold.
Earlier this week, the U.S. Federal Reserve maintained its benchmark interest rate, with Chair Jerome Powell indicating no immediate plans for rate cuts.
Market participants are now keenly awaiting the December U.S. personal consumption expenditures (PCE) price index data, the Fed's preferred inflation gauge, scheduled for release later on Friday.
A higher-than-expected reading could influence the Fed's policy decisions, potentially impacting gold prices.
Other precious metals were mixed on Wednesday. Platinum Futures were largely muted at $1,027.80 an ounce, while Silver Futures gained 0.7% to $32.76 an ounce.
Copper falls on proposed tariffs on industrial metals
In addition to the weak China demand, Trump’s renewed push for aggressive tariffs on imports—including steel, aluminum, and pharmaceuticals—has amplified concerns for industrial metals.
Copper prices continued their downward trend on Friday as markets grappled with Trump’s proposed import tariff.
Benchmark Copper Futures on the London Metal Exchange fell 0.5% to $9,080.65 a ton, while February Copper Futures inched 0.1% lower to $4.0.36 a pound.
