Gold prices remained resilient early Tuesday, trading close to historic peaks as investors continued to seek refuge amid escalating U.S.-China trade tensions. While spot gold slipped 0.4% to $3,224.60 per ounce, futures for June delivery held steady at $3,240.85/oz, just shy of the record $3,245.69/oz touched earlier in April.
Despite a brief dip sparked by exemptions on some Chinese electronics imports, gold maintained support from rising concerns over a prolonged trade standoff. President Trump’s 145% tariffs on Chinese goods, met by 125% retaliatory levies from Beijing, highlight the intensifying geopolitical risk and provide a compelling case for safe-haven inflows.
Also aiding gold’s appeal is a weakening U.S. dollar, pressured by a broad selloff in Treasury markets. The pullback in yields reflects growing investor anxiety over global growth risks and the uncertain trajectory of trade policy.
Tariff Tensions Fuel Recession Concerns
Gold’s strength is further underpinned by recession fears, which resurfaced after President Trump warned of upcoming tariffs on electronics and pharmaceuticals. Although the U.S. announced 90-day exemptions on some goods, the broader tariff regime remains intact, clouding the economic outlook.
Investor sentiment wavered amid:
- Tariff uncertainty and policy inconsistency
- Reduced optimism for U.S.-China trade resolution
- Weak macro signals from China and the U.S.
- Greater pricing of recession risk in bond markets
Markets currently assign increased odds to a U.S. recession within the next 12 months, a scenario likely to maintain upward pressure on gold prices. Meanwhile, broader safe-haven flows have left other precious metals trailing behind.
Tuesday metal snapshot:
- Platinum: Flat at $956.60/oz
- Silver: Up 0.2% to $32.225/oz
Copper Slips as China Demand Outlook Dims
Unlike precious metals, copper prices fell as demand forecasts weakened amid slowing Chinese growth. Analysts now see a steeper decline in China’s 2025 GDP, citing tariff-induced uncertainty and lower industrial output.
China’s copper imports dropped 1.4% in March, as speculative trading in U.S. markets diverted supply flows. The upcoming Q1 GDP release on Thursday is expected to provide further direction for industrial metals.
Current copper levels:
- LME copper: Down 0.2% to $9,168.65/ton
- U.S. copper futures: Down 0.8% to $4.6230/lb
With the trade war showing no signs of easing and risk-off sentiment dominating, gold remains a favored asset for investors hedging against volatility and economic shocks.
