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Gold Prices Rise Amid Trade War Uncertainty and Global Geopolitical Tensions

Gold prices edged higher during Tuesday’s Asian session, supported by continued concerns over U.S. trade tariffs and rising geopolitical tensions in Eastern Europe. Investor demand for safe haven assets remains robust as global markets navigate policy risks and potential conflict escalation.

Spot gold rose by 0.6% to USD 3,364.26/oz, while September gold futures climbed 0.4% to USD 3,373.52/oz as of 12:44 PM WIB. Although gold remains in a narrow trading band between USD 3,300 and USD 3,500, sentiment is gradually turning more bullish.

Trade Tariff Fears and Russia Tensions Boost Gold

Gold’s rise was largely driven by market unease over aggressive trade actions from the White House. President Trump recently announced steep tariffs of up to 30% targeting key trading partners like Mexico and the European Union.

Despite hints of negotiation, investors remain cautious over a potential escalation into a global trade war. Meanwhile, tensions between Russia and Ukraine have intensified, as the U.S. sent additional weapons to Kyiv and threatened stricter sanctions on Moscow’s oil sector.

Other Precious Metals and the Dollar

Silver and platinum traded mostly flat, despite outperforming gold in June. However, both now face technical resistance levels, limiting further upside.

Meanwhile, the U.S. dollar held firm, buoyed by investor anticipation of the upcoming Consumer Price Index (CPI) data. A hotter-than-expected CPI print could reduce the likelihood of rate cuts by the Federal Reserve, putting short-term pressure on gold.

China Data Weighs on Copper

Copper prices remained subdued following mixed economic data from China. LME copper futures rose 0.2% to USD 9,642.20/ton, while U.S. copper futures gained 0.3% to USD 5.5460/lb. Although China’s Q2 GDP slightly exceeded forecasts, weak retail sales and fixed asset investment raised concerns of further slowdown.

As the world’s top copper importer, any economic weakness in China could dampen global demand for the red metal. However, June data showed a 9% jump in copper imports, ending a two-month decline and offering short-term optimism.

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