Gold Steady After Record High as Fed Uncertainty and US-China Tensions Boost Safe-Haven Demand

Gold prices remained steady in early Asian trading on Tuesday, holding near record highs driven by growing safe-haven demand amid intensifying U.S.-China trade tensions and uncertainty over U.S. monetary policy. Spot gold edged up 0.2% to $3,431.05 per ounce, while June gold futures surged 1.8% to $3,388.20. On Monday, gold hit a new record of $3,444.57, marking three consecutive sessions of all-time highs fueled by central bank demand, inflation worries, and rising geopolitical risk.

Investor anxiety spiked after President Donald Trump renewed calls to cut interest rates and hinted at plans to replace Federal Reserve Chair Jerome Powell. Trump’s push to revamp the Fed has raised concerns over the central bank’s independence, especially after Powell stated last week that rate cuts were unlikely in the near term due to inflationary risks and the economic fallout from fresh tariffs.

The U.S. dollar continued to weaken, hitting a three-year low on Monday. A softer dollar typically boosts gold prices, making the metal more attractive to foreign investors.

Tensions between the U.S. and China escalated further after Beijing warned against trade deals that harm its interests. China’s Ministry of Commerce accused the U.S. of using tariffs and sanctions to pressure countries and warned of countermeasures. The U.S. has already imposed tariffs as high as 145% on Chinese goods, prompting retaliatory actions from Beijing.

In other metals, silver futures rose 0.4% to $32.665 per ounce, and platinum futures gained 0.3% to $969.40. Copper also climbed, with London futures up 0.7% to $9,289.60 per ton, and May copper futures advancing 0.4% to $4.7390 per pound, supported by the weaker dollar despite tariff-related caution.