During the Asian trading session on Tuesday (April 8), gold prices rebounded from a three-week low. As of 02:12 Eastern Time (06:12 GMT), spot gold rose 0.7% to $3,002.68 per ounce. In the previous trading session, gold had fallen below the $3,000 mark, hitting its lowest level since March 13. Since U.S. President Trump confirmed the implementation of “reciprocal” tariffs on April 2, uncertainty surrounding his tariff plan has intensified, and gold—often referred to as the “king of safe havens”—appears to have lost its luster. However, most analysts believe the sharp drop in gold should be temporary, as Trump’s trade actions may continue to support safe-haven demand.
SP Angel analysts noted that while gold often declines during broad market sell-offs, it is typically the first asset to rebound as investors exit equities. Gold will prove to be the preferred store of value.
Goldman Sachs analysts stated that the recent dip in gold prices presents a buying opportunity for investors, as the bullish case for gold remains strong.
On Monday, U.S. President Trump threatened to impose an additional 50% tariff on Chinese goods unless China revokes its recent 34% tariff hike on U.S. products. This aggressive stance reignited fears of a full-blown trade war, driving funds into gold as a safe haven.
ING analysts commented: “While gold is a traditional safe-haven asset, it can sometimes be sold off alongside other assets to cover losses. However, given that trade policy uncertainty will continue to support safe-haven demand, this gold price decline will be short-lived. Against a backdrop of geopolitical tensions and economic uncertainty, central banks will continue increasing their gold holdings as part of their safe-haven asset allocations.”
Among other precious metals, silver futures rose 1.3% to $29.970 per ounce, while platinum futures edged up 0.5% to $919.0. Copper prices extended gains on Tuesday, though tariff concerns capped the upside. The London Metal Exchange’s benchmark copper futures rose 0.5% to $8,783.50 per ton, while May-delivery copper futures fell 0.3% to $4.3165 per pound.
