Gold Climbs 0.8% as Trump's August Tariffs Spark Safe-Haven Rush, Copper Collapses 19% Amid Import Duties

Gold found its footing again in Asian trade on Thursday, clawing back from a one-month low as the clock ticks toward President Donald Trump's tariff deadline. The uncertainty surrounding these incoming tariffs pushed traders back into the safety of the yellow metal, even if gains remained somewhat restrained. The Federal Reserve's recent decision to hold rates steady without hinting at a September cut kept a lid on gold's rally, reminding everyone that higher interest rates still cast a shadow over non-yielding assets like gold.

Spot Gold climbed roughly 0.8%, trading near $3,301 an ounce, while gold futures hovered just above $3,350 by early Thursday, recovering after Wednesday's dip. That drop came after the Fed reiterated its hawkish stance, which didn't sit well with the markets, especially with Trump doubling down on trade action.

The 1 August tariff deadline seems to be rattling the markets. President Trump recently announced a 15% tariff on imports from South Korea and slapped a 25% tariff on Indian goods starting this Friday, with no trade deal in sight. Brazilian exports are also facing duties soaring up to 50%. Rumors are swirling about more executive orders targeting countries that have yet to strike a trade agreement. This looming tariff storm has reversed some of the optimism sparked by tentative U.S.-EU and U.S.-Japan trade talks, pushing gold demand back up as a hedge against escalating trade tensions.

In the background, the Fed's 9-2 vote to maintain the federal funds rate at 4.25%-4.50% caught attention. Governors Michelle Bowman and Christopher Waller were the dissenters, highlighting some internal friction. Still, the key takeaway was the Fed's cooler stance on an immediate rate cut - markets now seem to believe any easing of monetary policy is pushed out well into 2025. This stance keeps real yields elevated, something gold hates since it doesn't generate income.

Meanwhile, copper took quite the hit, especially in the U.S. The London Metal Exchange saw copper futures dip a modest 0.3% to around $9,683 per ton, but the U.S. copper futures plunged more dramatically, down over 4% to about $4.43 per pound.

The catalyst? President Trump's decision to exclude refined copper from a sweeping 50% import tariff starting August 1, but slap that heavy tariff on semi-finished copper products and copper-laden goods. U.S. copper prices had already dropped a jaw-dropping 19% on Wednesday - the largest intraday slump on record for the metal. Earlier hints of tariffs sent a rush of copper shipments to U.S. ports, flooding inventories. Now, with these fresh duties in place, there's talk that excess stockpiles could be shipped back out rather than soaked up domestically.

Other metals showed mixed moves. Platinum edged higher by 1.8% to around $1,339 an ounce, while silver saw a 1.4% drop, trading near $37.22 per ounce.

This back-and-forth in metals underscores the rollercoaster that trade policies and central bank moves continue to force on commodity markets. Gold's bounce amid tariff jitters contrasts sharply with copper's freefall, driven in part by shifting tariff rules and inventory dynamics. The next few days will be critical to see how these factors settle-or not-as August unfolds.