By Ayushman Ojha

(Pixabay)

Investing.com-- Gold prices held steady in Asian trading on Friday but were on track for weekly gains as the U.S. dollar lingered near a four-month low amid ongoing trade policy uncertainty. 

Investors remained cautious ahead of a key employment report due for release later in the day.

Spot Gold was largely unchanged at $2,913.57 per ounce, while Gold Futures expiring in April gained 0.1% to $2,920.55 an ounce by 01:26 ET (06:26 GMT).

Gold set for weekly gain on dollar weakness, safe-haven demand

Gold prices remained supported as the U.S. dollar hovered a four-month low, after hitting it in the precious session. 

The yellow metal was set to gain nearly 2% for the week.

The dollar’s decline against major currencies makes gold, priced in dollars, more attractive to investors.

Earlier this week, President Trump escalated trade tensions by imposing 25% tariffs on Canadian and Mexican goods and raising Chinese tariffs to 20%. 

However, just after two days, he eased his stance, delaying the 25% tariffs on Mexican and Canadian goods under the United States-Mexico-Canada Agreement (USMCA) until April 2.

The move, while offering temporary relief, has added to market volatility and uncertainty as markets remain unclear about U.S. trade policies.

Amid these developments, gold, often viewed as a safe-haven asset during periods of economic uncertainty, remained supported.

Meanwhile, market participants exercised caution ahead of the upcoming U.S. payrolls data, scheduled for release later on Friday. 

This report is anticipated to provide insights into the Federal Reserve’s future interest rate decisions, especially in light of recent inflation data that has supported the Fed’s hawkish stance.

Other precious metals were subdued. Platinum Futures was flat at $982.1 an ounce, while Silver Futures fell 0.4% to $33.198 an ounce.

Copper retreats from 3-wk high; fresh China stimulus eyed

Copper prices fell on Friday after hitting a three-week high in the previous session.

In his recent address to Congress, President Trump indicated that 25% tariffs on copper imports were already in effect. Earlier to this, he had signed an executive order initiating an investigation into whether copper imports threaten national security, a process that could lead to such tariffs.

Adding to the negative mood, data on Friday showed Chinese exports and imports came in weaker than expected for the first two months of 2025.

With China’s annual parliamentary meeting underway, investors anticipate potential policy measures to boost infrastructure and manufacturing, key sectors for copper demand. 

Benchmark Copper Futures on the London Metal Exchange fell 0.7% to $9,639.25 a ton, while Copper Futures expiring in April was slightly higher at $4.7875 a pound.

Source: Investing.com

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