Gold Rallies Amid Trump Tariff Impact, While Copper Slips on China Tariff Concerns

Gold prices surged on Wednesday in Asian trading, buoyed by their traditional safe-haven appeal after the U.S. tariffs—culminating in a 104% cumulative tariff on China—came into effect. Investors reacted to a mix of escalating trade tensions and a weakening dollar, which pushed bullion prices higher, even as other commodities showed mixed responses.

Gold's Rally

• Spot Gold:
  By 02:35 ET (06:35 GMT), spot gold had jumped 1.6% to $3,031.02 per ounce.

• Gold Futures:
  June gold futures gained 1.9% to $3,046.61 per ounce.

Earlier this week, gold had dipped below $3,000 per ounce for the first time since March 13, but rebound momentum was reignited when U.S. tariffs—particularly the new 50% increase announced on Tuesday—pushed the cumulative Chinese import duty to 104%. This strong safe-haven demand was also supported by a weakening U.S. dollar that slid to its six-month low, making gold cheaper for international buyers.

Trade Tensions and Their Broader Influence

The tariff shock on Chinese imports is part of a broader series of protectionist measures. Among the key tariffs announced are:

• 20% duty on European Union imports

• 24% on Japanese products

• 46% on Vietnamese goods

• 25% on South Korean items

• 32% on Taiwanese goods

These aggressive moves have rattled global markets and spurred retaliatory actions—China's earlier imposition of a combined tariff rate of 54% on U.S. products being a prime example. Such measures have heightened market volatility and increased inflation risks, as the cost of imported goods rises. With global supply chains now facing sharp disruptions, many investors are flocking back to gold as a hedge against these uncertainties.

Copper's Contrasting Performance

While gold enjoyed a robust rally, copper prices reacted differently. Benchmark copper futures on the London Metal Exchange were down about 0.6%, falling to $8,595.0 per ton. Meanwhile, copper futures expiring in May inched 0.6% higher, trading at $4.1512 per pound.
As the world's largest consumer of copper, China's industrial slowdown—exacerbated by the ongoing tariff dispute—poses significant risks to global copper demand. Rising tariffs on Chinese goods are expected to disrupt supply chains further, negatively impacting the price of industrial metals like copper.

What This Means for Investors

The disparate performance among commodities highlights the complex interplay of trade policies and market sentiment:

• Gold's Safe-Haven Strength: With the U.S. dollar weakening and tariff uncertainties spurring inflation fears, gold remains a key refuge.

• Industrial Metals Under Pressure: Conversely, copper's performance signals vulnerabilities in sectors reliant on global industrial activity—especially in China, where trade tensions have dampened growth expectations.

Investors looking to analyze these trends in detail can explore comprehensive, real-time data on commodity price fluctuations using the Commodities endpoint. This resource offers insights into not only gold and copper prices but also a wide range of commodities, helping market participants gauge broader trends.

As trade tensions continue to escalate, and policymakers navigate a fractured global trading landscape, the divergent performance of commodities like gold and copper underscores the uncertainty facing investors. With tariffs reshaping both supply chains and price dynamics, monitoring real-time commodity data becomes ever more crucial for making informed investment decisions.