Investing.com– Gold prices moved little in Asian trade on Tuesday as investors speculated over more trade tariffs under U.S. President-elect Donald Trump, although a recent drop in the dollar offered some relief to the yellow metal.
Bullion prices were nursing losses through December, amid some profit-taking, and as investors positioned for a slower pace of interest rate cuts by the Federal Reserve in 2025.
Strength in the dollar was a major weight on gold, as the greenback surged to over two-year highs. But the dollar slid from these peaks on Monday.
rose 0.1% to $2,638.05 an ounce, while expiring in February rose 0.1% to $2,649.19 an ounce by 23:30 ET (04:30 GMT).
Trump denies plans to impose less strict tariffs
Trump on Monday denied a Washington Post report that his administration will only target critical imports with trade tariffs. The President-elect has vowed to impose steep import tariffs to further the U.S.’ trade dominance, especially over China.
Still, the report and Trump’s comments spurred increased uncertainty over just what Trump’s policies will entail for global trade. The slid to a one-week low after the report, but recouped a bulk of its losses.
Weakness in the dollar offered limited relief to gold, given that the yellow metal is grappling with the prospect of slower interest rate cuts in 2025. Hawkish comments from Fed officials furthered this notion over the weekend.
Goldman Sachs also warned in a Monday note that gold will only hit $3,000 an ounce by mid-2026, after failing to reach the target in 2024.
The investment bank sees gold ending 2025 at around $2,900 an ounce.
Higher rates bode poorly for gold and metal prices, given that they increase the opportunity cost of investing in the yellow metal.
Other precious metals were mixed on Tuesday. rose 0.4% to $949.50 an ounce, while steadied at $30.573 an ounce.
Copper steadies with more China cues in focus
Among industrial metals, copper prices steadied after regaining some ground this week on the prospect of more economic stimulus in top importer China.
Benchmark on the London Metal Exchange rose 0.2% to $8,983.50 a ton, while March steadied at $4.1540 a pound.
The red metal rose on Monday as investors bet that worsening economic conditions and pressure from U.S. trade headwinds will push Beijing into doling out more elaborate stimulus measures to support growth.
inflation data due later this week is set to offer more cues on the country.
Outside China, copper took mixed signals from middling purchasing managers index data from the U.S. and euro zone, which showed business activity remained subdued in December.
