Approaching Tariff Deadline Shifts Investors To Safe Havens
Gold prices increased due to investor focus on trade deals before President Trump’s July 9 tariff deadline. A 90-day tariff pause began on April 2, but only two deals (China, UK) have been secured. Countries without deals face tariffs up to 50%. The Financial Times reported Tuesday that US officials are pursuing narrower agreements for quick wins, while still considering tariffs on key sectors.
Trump also threatened tariffs on Tokyo, and Treasury Secretary Scott Bessent stated steep tariff hikes are possible even with negotiations, expecting many deals before the deadline. Uncertainty over trade outcomes and new sectoral tariffs led investors to safe-haven assets.
Dollar Depreciation Fuels Metal Market Upturn
US Dollar Index stayed subdued in Asia, near three-year lows. Silver Futures rose 0.4% to $36.00/ounce; Platinum Futures fell 0.4% to $1,360.45. London Copper Futures gained 0.2% to $9,839.95/ton, and US Copper Futures surged 1.2% to $5.1145/pound. Copper’s gains were bolstered by unexpected growth in China’s Caixin PMI for June, as improved trade conditions boosted sentiment in the world’s top copper importer.
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