Gold prices remained stable in Asian trading on Friday and were poised for weekly gains as the U.S. dollar hovered near a four-month low due to ongoing trade policy uncertainty.
Investors exercised caution ahead of a critical employment report scheduled for release later in the day.
Key Points for Gold Prices:
- Spot Gold was steady at $2,913.57 per ounce, while Gold Futures expiring in April rose 0.1% to $2,920.55 an ounce by 01:26 ET (06:26 GMT).
- The U.S. dollar’s decline supported gold prices, making it more attractive to investors.
- President Trump imposed 25% tariffs on Canadian and Mexican goods, then later delayed them under USMCA, adding to market uncertainty.
- Investors awaited U.S. payroll data, which could influence the Federal Reserve’s interest rate stance.
- Other precious metals showed mixed movements, with Silver Futures falling 0.4% and Platinum Futures remaining flat.
Gold Market Analysis
The ongoing decline of the U.S. dollar has played a significant role in supporting gold prices. The yellow metal was set to gain nearly 2% for the week as the weaker dollar made gold more appealing to investors. President Trump’s tariff policies also fueled volatility, adding to the uncertainty surrounding U.S. trade relations.
Earlier this week, Trump imposed a 25% tariff on Canadian and Mexican goods while raising Chinese tariffs to 20%. However, two days later, he delayed the 25% tariffs on Mexican and Canadian goods under the USMCA until April 2. While this move provided temporary relief, it heightened concerns over long-term trade stability. As a result, gold, often viewed as a safe-haven asset during economic uncertainty, saw continued demand.
Technical Insights
Gold prices remained supported by technical indicators, with key resistance at $2,925 and support around $2,900. Market participants closely watched upcoming U.S. payroll data, which could influence the Federal Reserve’s monetary policy decisions.
Meanwhile, other precious metals showed mixed trends. Platinum Futures stayed flat at $982.1 per ounce, while Silver Futures declined 0.4% to $33.198 per ounce.
Copper Prices Retreat After Hitting Three-Week High
Copper prices declined on Friday after reaching a three-week high in the prior session. The drop followed President Trump’s announcement that 25% tariffs on copper imports were already in effect. Prior to this, he had signed an executive order launching an investigation into whether copper imports posed a national security risk, potentially leading to higher tariffs.
Additionally, weaker-than-expected Chinese export and import data for the first two months of 2025 contributed to copper’s decline. Investors are closely monitoring China’s annual parliamentary meeting, anticipating potential stimulus measures to boost infrastructure and manufacturing—key sectors for copper demand.
Benchmark Copper Futures on the London Metal Exchange dropped 0.7% to $9,639.25 per ton, while April Copper Futures edged slightly higher to $4.7875 per pound.
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