Copper gained 0.9% and gold saw a modest rise on Donald Trump’s inauguration day, as reports indicated the new president would delay implementing aggressive tariffs. The US dollar fell by as much as 1.2% that Trump would hold off on imposing new tariffs on his first day in office. A weaker dollar typically lowers the price of metals in other currencies, boosting demand.
The announcement led to a narrowing of premiums for gold and copper on the New York-based Comex, cooling the trend of US metal prices rising above international benchmarks due to the anticipated threat of tariffs.
While the news provided some relief for the metals market, investors remain wary of potential geopolitical tensions. Trump has criticized traditional allies such as Canada, Mexico, and Europe in the lead-up to his inauguration, sparking concerns that this could escalate. Such tensions may strengthen gold as a safe-haven asset, but they could also bolster the US dollar, which could pressure metal prices.
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