Is a weekly drop in the price of gold expected due to the rise in the dollar: Trump’s customs actions are in focus

Gold prices were flat in Asian trade on Friday and headed for a third straight weekly loss as a rising dollar offset safe-haven demand spurred by escalating U.S. trade tensions.

Spot gold rose 0.2% to $3,396.25 an ounce, while gold futures remained steady at $3,348.10 an ounce by 01:58 ET (05:58 GMT).

Strong dollar raises costs, curbs demand

The U.S. dollar index rose slightly on Friday to its highest level in more than two months and was on track to post its best weekly gain in nearly three years.

A stronger dollar makes gold more expensive for holders of other currencies and usually reduces interest in buying gold.

The dollar was supported by the Federal Reserve’s decision to leave interest rates unchanged and renewed political uncertainty related to US trade actions.

Trump escalates tariff measures

On Thursday, President Donald Trump stepped up his tariff action by signing an executive order imposing steep “reciprocal tariffs” on imports from more than a dozen countries ahead of an Aug. 1 deadline.

Tariff rates range from 15% for South Korean goods to 20% for Taiwanese exports, 19% for Thai exports, and 25% for Indian exports.

In a separate order, Trump raised tariffs on Canadian goods from 25% to 35%, citing Canada’s insufficient efforts to prevent shipments of fentanyl from entering the United States.

While increased tariff action typically boosts demand for safe-haven assets, a stronger U.S. dollar has limited gold’s gains.

Metal markets depressed; US copper stabilizes after sharp decline

Platinum futures rose 0.4% to $1,298.35 an ounce, while silver futures fell 0.1% to $36.682 an ounce.

Benchmark copper futures on the London Metal Exchange rose 0.5% to $9,655.95 a tonne, while U.S. copper futures fell 0.2% to $4.423 a pound.

U.S. copper prices plunged 19% on Wednesday after President Trump excluded the refined metal from his planned 50% import tariff. U.S. copper prices continued to fall on Thursday.

From August 1, a 50% tariff will apply to semi-finished copper products and goods with a high copper content, but not to copper ores, concentrates or cathodes.