HG MARKETS:

Gold prices saw a modest rise in Asian trading on Tuesday, driven by increased demand for safe-haven assets following trade tariff threats by U.S. President-elect Donald Trump. Spot gold gained 0.1% to $2,628 per ounce, while December gold futures advanced 0.4% to $2,653.80 per ounce. However, a stronger U.S. dollar, which approached a two-year high, limited further gains in the yellow metal.

Trump proposed imposing a 10% import tariff on Chinese goods and a 25% tariff on imports from Canada and Mexico, citing the need to combat illegal immigration and drug trafficking at U.S. borders. These announcements heightened fears of a potential global trade war, particularly with China, which has already expressed opposition and may retaliate. Market uncertainty stemming from these developments bolstered interest in safe-haven assets like gold.

Nevertheless, gold’s rally was tempered by easing geopolitical tensions in the Middle East. Reports of a possible ceasefire between Israel and Lebanon reduced safe-haven demand, reversing some of the steep gains from earlier periods when heightened tensions in the region, including conflict between Israel and Iran, had boosted gold prices.

Other precious metals showed mixed performance. Platinum futures slipped 0.1% to $943.60 per ounce, while silver futures rose 0.5% to $30.82 per ounce. Industrial metals faced downward pressure as concerns over economic challenges for China, the world’s largest importer, weighed on market sentiment. London Metal Exchange benchmark copper futures fell 0.3% to $9,026.50 per ton, while March copper futures dropped 0.4% to $4.1453 per pound.

Gold maintained some strength from last week’s geopolitical concerns, particularly increased tensions between Russia and Ukraine. Moscow’s warnings of potential nuclear retaliation in response to Kyiv’s use of Western-made long-range missiles had earlier fueled demand for safe-haven assets. However, with signs of easing conflicts in other regions, market focus now shifts to trade policies and their broader economic implications.