Investing.com — Gold prices rose slightly in Asian trading on Wednesday to an 11-week high, as demand for the safe-haven asset rose amid concerns about U.S. tariffs under President Donald Trump's administration. The stock continued to rise for three consecutive sessions.
By 01:45 ET (6:45 p.m. Japan time), February maturity rose 0.2% to $2,766.57 an ounce, its highest since early November.
The yellow metal was on track for a third consecutive day of gains as traders remained cautious as they tried to gauge President Trump's policies, which are expected to increase inflation. Gold is considered a hedge against inflation.
The dollar tumbled on Monday after President Trump avoided details of US trade tariffs, further supporting gold prices.
Bullion supported by demand for a “safe haven” amid global uncertainty
Traditionally seen as a safe-haven asset, the precious metal has remained above a one-month high since last week. This reflects markets bracing for global uncertainty as President Trump's policy announcements and tariff declarations are expected to impact market trends.
President Trump said on Tuesday that he was considering imposing a 10% tariff on imports from China starting February 1, and also vowed to impose tariffs on the European Union.
Higher tariffs are likely to reduce trade imbalances and increase inflation, both of which are seen as positive for the dollar.
A stronger dollar typically lowers the price of gold by making the metal more expensive for buyers using other currencies.
Asian trade rose 0.2% on Wednesday, after ending almost unchanged the previous day. It fell more than 1% on Monday as President Trump avoided announcing tariffs.
Traders are closely monitoring President Trump's moves to gauge the impact on gold prices.
Other precious metals also fell on Wednesday. It was unchanged at $968.45 per ounce and steady at $31.51 per ounce.
Copper prices fall further due to tariff concerns
Due to the combination of expected US tariffs and the prospect of a stronger dollar, copper prices continued to decline even after President Trump took office.
Copper prices have historically fallen due to declining demand from China, the world's largest consumer of copper, as tariffs and trade tensions intensify.
The benchmark price on the London Metal Exchange fell 0.6% to $9,232.50 a tonne, while February fell 0.9% to $4.3015 a tonne.
