Gold prices hit a record high in Asian trade on Tuesday as heightened geopolitical ructions in the Middle East- particularly the breaching of an Israel-Hamas ceasefire- fueled safe haven demand.

Safe haven demand also remained underpinned by persistent uncertainty over U.S. President Donald Trump’s trade tariffs and a cooling U.S. economy. Anticipation of a slew of key central bank meetings this week also kept investors geared towards safe havens. 

Spot gold rose 0.2% to a record high of $3,008.56 an ounce, while gold futures expiring in May hit a peak of $3,017.50 an ounce. 

Israel launches attacks against Hamas target in Gaza, ceasefire talks fail 

A slew of media reports said Israel had launched strikes against Hamas targets across Gaza after talks over a ceasefire fell through. The strikes reportedly killed over 40 people, including senior Hamas officials, and drew ire from the group, which accused Israel of violating a January ceasefire.

Israel and Hamas had agreed to a tentative ceasefire in mid-January. But talks over a more concrete peace treaty had soured amid disagreements over the terms of the ceasefire, while U.S. delegates were also unable to broker peace. 

Israel claimed the strikes were in retaliation for Hamas’ repeated refusal to release Israeli hostages. 

Tuesday’s strikes mark a renewal in tensions in the Middle East, further underpinning safe haven demand for gold, keeping spot prices at record highs above the $3,000 an ounce level. 

Fed anticipation, tariff uncertainty underpin gold 

Gold also benefited from haven demand amid persistent uncertainty over Trump’s tariff plans, especially as his main targets- Europe, China, Canada, and Mexico- announced a slew of retaliatory measures.

Trump repeated his threat that reciprocal and sectoral tariffs will come by as soon as April 2. Concerns over economic disruptions from the tariffs drummed up fears of a U.S. recession. 

A Fed meeting is now in focus for more economic cues, with the central bank widely expected to keep rates unchanged at the conclusion of a two-day meeting on Wednesday. But the central bank is expected to taper its hawkish outlook in the face of heightened economic uncertainty. 

Beyond the Fed, Bank of Japan and Bank of England meetings are also on tap this week.

Other precious metals rose tracking gold on Tuesday, with platinum futures up 0.4% at $1,030.20 an ounce, while silver futures rose 0.5% to $34.480 an ounce.

Among industrial metals, benchmark silver futures on the London Metal Exchange rose slightly to $9,867.20 a ton, while May copper futures rose 0.1% to $4.9850 a pound.

Copper prices were buoyed by optimism over more stimulus measures in top importer China.

Investing.com-- Most Asian stocks rose on Tuesday, with Hong Kong markets rallying on increasing optimism over more Chinese stimulus, while confidence in the country’s AI capabilities drove buying into major technology shares. 

Japanese shares were also standout performers, with the country’s five largest trading houses marking strong gains after billionaire investor Warren Buffett’s Berkshire Hathaway Inc (NYSE:BRKa) increased its holdings in the companies.

Broader regional markets tracked overnight strength in Wall Street, as a mix of bargain buying and some signs of economic resilience helped U.S. stocks rise further out of correction territory. 

But U.S. stock index futures fell in Asian trade, as investors remained skittish over more trade tariffs and a potential recession. Anticipation of a Federal Reserve meeting- which begins later on Tuesday- also sparked caution.

Risk appetite was dented by heightened geopolitical tensions in the Middle East, after Israel launched a wave of deadly strikes against Hamas amid the apparent collapse of a January ceasefire. 

Hong Kong soars on AI hype, China stimulus cheer 

Hong Kong’s Hang Seng index was the best performer in Asia, rallying nearly 2% to three-year highs on buying into heavyweight technology stocks.

Baidu (NASDAQ:BIDU) Inc (HK:9888) soared 10% after the company launched two new AI models, including one which it claimed rivaled DeepSeek- which has become a hot topic for the AI industry. 

Alibaba (NYSE:BABA) Group (HK:9988) rose more than 4% after the e-commerce giant, led by CEO Eddie Wu, told its major divisions that their 2025 performance will be gauged largely by their ability to leverage AI for future growth, according to a Financial Times report. The report highlighted a growing focus on AI within the e-commerce giant.

Gains in Baidu and Alibaba spilled over into other technology stocks, given that their efforts highlighted growing interest and confidence in China’s AI capabilities. 

Among other tech majors, BYD Co (HK:1211) soared to a record high after the electric vehicle giant and Tesla (NASDAQ:TSLA) rival launched a new fast-charging technology which it claimed could recharge EVs in a matter of minutes. 

Outside tech, broader Hong Kong and Chinese markets advanced after Beijing revealed more details on its plans for stimulus, drumming up confidence in a 2025 economic recovery.

The mainland Shanghai Shenzhen CSI 300 and Shanghai Composite indexes added 0.3% and 0.2%, respectively. 

Australia’s ASX 200 rose 0.2%, also buoyed by optimism over major trading partner China. South Korea’s KOSPI added 0.3%, while Singapore’s Straits Times index surged 0.9%. 

Japan stocks buoyed by Berkshire increasing trading houses stakes

Japan’s Nikkei 225 index jumped 1.6%, while the TOPIX index added 1.5%. 

The two were boosted chiefly by standout gains in Japan’s five biggest trading houses- Itochu Corp. (TYO:8001), Mitsui & Co., Ltd. (TYO:8031), Mitsubishi Corp. (TYO:8058), Sumitomo Corp. (TYO:8053), and Marubeni Corp. (TYO:8002)- after Berkshire Hathaway increased its holdings in each company to nearly 10%. Buffett has repeatedly endorsed the five companies, and has flagged plans to increase his holdings.

Focus in Japan was squarely on a Bank of Japan meeting, with the central bank widely expected to keep rates unchanged on Wednesday. But it is also expected to strike a hawkish chord on recent signs of resilience in Japanese inflation and the economy. 

Among other Asian markets, futures for India’s Nifty 50 index pointed to a positive open, with the index widely expected to track gains in its regional peers.

(Reuters) - Gold prices scaled a record peak above the key $3,000 mark on Tuesday for the second time within a week, as investors sought cover from economic concerns fuelled by U.S. President Donald Trump’s tariff polices.

Spot gold prices hit a record high of $3,005.09 per ounce.

Historically considered a reliable store of value during times of geopolitical instability, gold has risen 14% so far this year. Since Trump took office in January, gold has hit a record high 14 times as trade tensions have led to growing safe-haven demand.

"With the price now reaching our long-held target of $3,000/oz, the main question is whether the rally will continue. We think so, as long as policy risks and an intensifying trade conflict continues to spur safe-haven demand," UBS said in a note. "We revise our target to $3,200/oz over all tenors (from $3,000)."

Trump has floated plans for a series of U.S. tariffs, from a flat 25% on steel and aluminium which came into effect in February, as well as reciprocal and sectoral tariffs that he said will be imposed on April 2.

U.S. stock index futures steadied on Monday evening after a mix of bargain buying and some positive economic data helped Wall Street mark a two-day rebound from correction territory. 

 But gains were limited amid caution before a Federal Reserve meeting this week, while investors were also awaiting more cues on artificial intelligence from Nvidia’s developer conference. 

Caution over President Donald Trump’s plans for more trade tariffs continued to weigh, as Trump warned that more duties will be imposed by April 2. 

But risk appetite took some support from chatter over a Russia-Ukraine ceasefire, with Trump set to speak to Russian President Vladimir Putin on Tuesday. 

S&P 500 Futures were flat at 5,732.25 points, while Nasdaq 100 Futures steadied at 20,035.25 points by 19:29 ET (23:29 GMT). Dow Jones Futures steadied at 42,231.0 points.

Fed meeting front and center

Investors were focused squarely on a two-day Fed meeting- which begins on Tuesday- for more cues on the economy and interest rates.

The central bank is widely expected to keep rates unchanged, and is expected to signal few changes amid sticky inflation and heightened uncertainty over the economic impact of Trump’s policies. 

Still, some signs of cooling in the labor market could push the Fed into softening its hawkish stance, as could growing speculation over a U.S. recession. 

Nvidia developer conference awaited 

NVIDIA Corporation (NASDAQ:NVDA) steadied in aftermarket trade following a 1.8% loss during Monday’s session.

The chipmaker was nursing heavy losses over the past month, as broader market sentiment soured, and as investors questioned just how much strength there remained in the AI trade amid increased market turmoil. Nvidia was trading down about 20% from its January record high. 

Investing.com-- Gold prices fell slightly in Asian trade on Monday after racing to record highs, as safe haven demand remained underpinned by uncertainty over trade tariffs and a slowing economy. 

Haven demand was also boosted by increased geopolitical ructions in the Middle East, after the U.S. launched a wave of air strikes on Houthi rebels in Yemen in retaliation for their attacks on shipping lanes in the Red Sea. 

But this trend was undermined by some signs of progress in Russia-Ukraine ceasefire talks, with President Donald Trump stating that he will speak to Russian President Vladimir Putin on Tuesday. 

Gold also saw some profit-taking after reaching record highs above $3,000 an ounce last week. 

Spot gold fell slightly to $2,982.80 an ounce, while gold futures expiring in April fell 0.3% to $2,991.62 an ounce by 01:14 ET (05:14 GMT). Spot prices hit a record high of $3,005.08 an ounce on Friday. 

Tariffs, economic jitters keep gold strong 

Trump on Sunday evening repeated his threats of reciprocal and sectoral tariffs being imposed on April 2- a move that is widely expected to escalate a brewing global trade war. 

But markets were uncertain over just how much Trump will commit to the tariffs, given that he had earlier this month flip-flopped on measures against Canada and Mexico. 

Still, the two countries, along with China and the European Union, outlined retaliatory measures against the U.S., and are expected to impose even stricter measures against Trump’s reciprocal tariffs.

Fears of trade-related disruptions and a potential tariff-driven bump in inflation drummed up fears of a U.S. recession. 

Haven demand was also furthered by anticipation of a barrage of central bank meetings this week, most notably the Federal Reserve, Bank of Japan, and the Bank of England. 

U.S. industrial production and retail sales date is also set to provide more cues on the world’s biggest economy.

Other precious metals were a mixed bag after clocking strong gains in recent sessions. Platinum futures rose 0.5% to $1,018.0 an ounce, while silver futures fell 0.3% to $34.328 an ounce. Silver prices briefly touched a five-month high. 

Copper steady with China stimulus in focus 

Among industrial metals, copper prices steadied on Monday with focus squarely on more stimulus measures in China. Expectations of more support from Beijing had spurred a strong run-up in copper prices over the past month.

Benchmark copper futures on the London Metal Exchange rose 0.1% to $9,805.40 a ton, while May copper futures were flat at $4.8950 a pound. 

Sentiment over China- the world’s biggest copper importer- was boosted by Beijing announcing a host of measures to boost private consumption. Stronger-than-expected industrial production data also aided sentiment. 

Copper was also boosted by Trump flagging plans to impose 25% tariffs on all copper imports- a move that could severely tighten physical supplies in the U.S.

ABOARD AIR FORCE ONE (Reuters) -U.S. President Donald Trump said he has no intention of creating exemptions on steel and aluminum tariffs and said reciprocal and sectoral tariffs will be imposed on April 2.

Last month, Trump raised tariffs on imports of steel and aluminum to a flat 25%, without exemptions or exceptions, in a move that was designed to help U.S. industry while contributing to an escalating trade war.

Speaking to reporters on Air Force One, Trump said reciprocal duties on U.S. trading partners would come alongside auto duties.

"In certain cases, both," Trump said when asked if he would be imposing sectoral and reciprocal tariffs on April 2. "They charge us, and we charge them. Then, in addition to that, on autos, on steel, on aluminum, we’re going to have some additional," he said.

Trump has said previously that he would impose reciprocal tariffs on U.S. friends and foes alike at the beginning of April.

Investing.com-- Asian stocks rose on Monday tracking optimism over the Chinese economy after Beijing outlined targeted measures to boost spending, although persistent concerns over a U.S.-led trade war kept gains limited. 

Regional markets also took a positive lead-in from a Friday rebound on Wall Street, although the rebound appeared to have petered out with U.S. stock index futures falling in Asian trade. 

Persistent concerns over U.S. trade tariffs and slowing growth undermined overall risk appetite, as did anticipation of a barrage of key central bank meetings this week, particularly the Federal Reserve and the Bank of Japan. 

Barring China, most Asian markets were nursing steep losses over the past month, amid heightened concerns over U.S. trade tariffs and a potential recession.

Chinese stocks buoyed by more stimulus cues 

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose marginally, while Hong Kong’s Hang Seng index surged as much as 1%. 

Sentiment towards the country was boosted chiefly by Beijing unveiling “comprehensive” measures aimed at boosting domestic consumption and driving up economic growth.

A report from the State Council outlined a plan to strengthen consumer demand by increasing wages, offering more subsidies and also increasing social welfare. 

The planned measures are more promises from Beijing to boost sluggish private spending- which has been a major point of pressure on the Chinese economy over the past four years. 

Data on Monday showed Chinese industrial production blazed past expectations in the first two months of 2025, while retail sales grew as expected. Fixed asset investment grew more than expected, while China’s unemployment rate unexpectedly rose.

Optimism over more Chinese stimulus and the country’s artificial intelligence capabilities drove a stellar rally in local markets so far in 2025, although a bulk of buying was directed towards Hong Kong. 

A key Chinese loan prime rate decision is due later this week. 

Japan’s Nikkei surges with BOJ in focus 

Japan’s Nikkei 225 index added 1.1%, while the broader TOPIX index rose 1.2%. 

Focus this week is squarely on a BOJ meeting, with the central bank widely expected to keep interest rates steady at its conclusion on Wednesday. 

But investors will be watching for any commentary on the BOJ’s plans to hike interest further this year, amid signs of sticky Japanese inflation, rising wages, and positive economic growth. 

Broader Asian markets took positive cues from China, with Australia’s ASX 200 index rising 0.6%. But the index did trim some gains after Treasurer Jim Chalmers flagged higher inflation and slower economic growth due to the impact of Cyclone Alfred. 

Singapore’s Straits Times index rose 0.7% following mixed export data. The country’s key non-oil exports grew more than expected in February from the prior month, but year-on-year growth still missed expectations. 

South Korea’s KOSPI rose 1.4% on bargain buying into major technology stocks. But sentiment towards the country remained strained before a key court ruling on impeached President Yoon Suk Yeol over his attempt to impose martial law in December. Anticipation of the decision- which is due this week- sparked mass rallies across South Korea. 

Futures for India’s Nifty 50 index pointed to a mildly positive open, as the index nursed sustained losses since late-2024. Indian wholesale inflation data is due later on Monday. 

By Hyunjoo Jin

SEOUL (Reuters) - The United States has called for better access to the Korean market, particularly in the agriculture and technology sectors, South Korea’s trade minister said on Sunday.

Trade Minister Cheong In-kyo was returning from a trip to Washington where he asked his U.S. counterpart, Jamieson Greer, to exempt the country from tariffs if they go into effect in April.

But he expected U.S. President Donald to go ahead with announcing tariffs on April 2 as scheduled, especially on countries like South Korea which have trade surpluses with the United States.

U.S. officials did not mention beef specifically, but they said Korea needs to take action in terms of sanitary and quarantine measures, Cheong said, also citing regulations on technology firms - areas that they said make access to the Korean market challenging, the minister added.

South Korea, one of the top importers of U.S. beef, has allowed imports of U.S. beef since 2008, but only from animals less than 30 months old, due to public concerns about mad cow disease. The restriction was cited as one of the trade barriers to South Korea in a U.S. report.

Greer also warned of the approach by Korea and the European Union to regulating U.S. technology companies, during a Senate confirmation hearing in February.

U.S. stock index futures fell on Sunday evening as a rebound on Wall Street, from correction territory, appeared to have stalled in the face of uncertainty over trade tariffs and the economy.

Investors were also on guard before more economic cues from a Federal Reserve meeting this week, with the central bank widely expected to keep rates unchanged. 

Futures fell after a positive Friday session on Wall Street, where a measure of bargain buying helped indexes rebound from near six-month lows. Sunday’s losses suggested that this rebound was fleeting and unlikely to carry over into this week.

Comments from Treasury Secretary Scott Bessent- who downplayed recent losses in equity markets- also did little to lift spirits. 

S&P 500 Futures fell 0.6% to 5,655.75 points, while Nasdaq 100 Futures fell 0.8% to 19,765.25 points by 19:06 ET (23:06 GMT). Dow Jones Futures fell 0.5% to 41,635.0 points. 

Fed meeting, econ data on tap this week

The Fed is widely expected to keep interest rates unchanged at the conclusion of a meeting later this week, amid continued uncertainty over the economy under President Donald Trump.

Trump’s flip-flopping on trade tariffs against major trading partners, coupled with his continued threats of more tariffs, were a key point of uncertainty for markets in recent months. 

Uncertainty over the economy also contributed to growing fears of a recession, with the Fed likely to comment on this trend. 

Recent data showed inflation remained resilient, while retail sentiment and the labor market cooled. The latter could give the Fed some impetus to soften its hawkish stance on rates. 

Investing.com - U.S. stock futures tick higher on Friday following a sell-off on Wall Street that pushed the S&P 500 down into correction territory. Elon Musk-led Tesla (NASDAQ:TSLA) warns of the impact of President Donald Trump’s tariffs on U.S. electric car manufacturers, while a metric of consumer sentiment for March is due to be released and Senate Democrats look set to provide enough backing to pass a Republican stopgap bill to avert a federal government shutdown.

1. Futures higher

U.S. stock futures pointed higher on Friday after the benchmark S&P 500 tumbled into correction territory in the prior session as investors further soured over President Trump’s tariff plans.

By 03:44 ET (07:44 GMT), the S&P 500 futures had edged up by 26 points or 0.5%, Nasdaq 100 futures had risen by 123 points or 0.6%, and Dow futures had climbed by 123 points or 0.3%.

The S&P 500 sank by 1.4% on Thursday, bringing it down by 10.1% from a peak reached less than a month ago. The slump, which places the average in what is referred to as a correction, has been driven by a near-constant stream of on-and-off trade pronouncements from Trump and lingering unease over a series of layoffs of federal workers.

In other indices, the tech-heavy Nasdaq 100 shed just under 2.0% and the small-cap-focused Russell 2000 dipped by 1.6%. Both were already in correction. Meanwhile, the blue-chip Dow Jones Industrial Average fell by 1.3%.

Despite the declines, Trump administration officials maintained a steadfast defense of their agenda, particularly moves to place punishing tariffs on friends and adversaries alike, as necessary steps to amend trade imbalances and boost job growth. Treasury Secretary Scott Bessent said on Thursday that he was "not concerned about a little bit of volatility over three weeks."

Undermining sentiment was Trump’s threat on Thursday to slap 200% duties on European wine and champagne in response to an announcement from the European Union of retaliatory import tariffs on a host of U.S. products, including whiskey and Harley-Davidson (NYSE:HOG) motorcycles.

2. Tesla warns of tariff impact

Tesla has warned that it could be exposed to the impact of foreign countries rolling out their own import tariffs as an answer to Trump’s levies.

The electric vehicle giant, whose CEO Elon Musk has become a close advisor to Trump and has overseen a White House effort to downsize the federal government, made the warning in an unsigned letter to the U.S. Trade Representative.

"As a U.S. manufacturer and exporter, Tesla encourages USTR to consider the downstream impacts of certain proposed actions taken to address unfair trade practices," the company wrote.

It noted that past trade actions by the U.S. have resulted in "immediate reactions by the targeted countries," including increased tariffs on EVs imported into those countries. These have pushed up costs to manufacture vehicles in the U.S. and expenses for those same care when exported, resulting in a "less competitive international marketplace for U.S. manufacturers," Tesla said.

Trump has floated place harsh tariffs on cars and parts made around in the world from April 2 in a bid to promote domestic carmaking. However, Tesla flagged that, even with the localization of supply chains, some components are "difficult or impossible to source within the United States."

3. Consumer sentiment data ahead

On the economic calendar, markets will be eyeing the latest gauge of consumer sentiment from the University of Michigan, as traders hope to glean more insight into the recently downbeat state of the American shopper.

The preliminary measure for March is tipped to edge lower. In February, it declined to a seven-month low due to rising worries over the negative effects of Trump’s tariffs on their purchasing power. Notably, the survey found that the dip occurred across age and wealth groups as well as political affiliations.

Expectations for inflation over the coming year also soared to their highest mark since November 2023, while they saw price gains in five years climbing to the highest point since June 2008.

The numbers contributed to burgeoning concerns on Wall Street that Trump’s levies, which economists have warned could drive up recently-waning inflationary pressures, could also weigh on broader economic activity. Data this week has suggested that both consumer and producer price growth cooled in February, although fears remained that the impact of the tariffs is still to come.

4. Senate Democrats seen backing GOP stopgap bill

Senate Democrats are expected to back a Republican-written stopgap bill to avoid a government shutdown on Friday, even as reports suggested lingering internal dissent within the party.

Chuck Schumer, the leading Democrat in the senior chamber of the U.S. Congress, said on Thursday that he would support the measure, in a sign that the party will provide enough votes for it to be advanced. While Republicans control the Senate, they will need some Democratic support to break any potential filibuster against the bill.

Schumer did not specify how other Senate Democrats would vote, with the New York Times (NYSE:NYT) reporting that he surprised many of his colleagues when he announced at a private luncheon that he planned to allow the bill to move forward.

Earlier this week, Schumer had said Democrats were "unified" in their opposition to the legislation, even as a midnight Friday deadline to keep federal funding taps open loomed.

Along with tariffs and a spree of massive federal layoffs, analysts have cited the legislative wrangling in Congress as yet another source of uncertainty for markets in recent weeks.

5. Oil rises amid elusive Ukraine peace deal

Oil prices bounced on Friday after Russian President Vladimir Putin suggested that a U.S. proposal for a ceasefire in the war in Ukraine needed some reworking.

Putin said on Thursday that while Russia supported the plan in principle, more clarifications and conditions on a range of points had to be sorted out before the fighting could come to a halt.

For crude markets, traders are attempting to assess whether a deal may eventually lead to the lifting of sanctions on Russia and the return of energy supplies to the global market. In theory, such an event could drive down oil prices.

Elsewhere, gold continued to hover around an all-time high as escalating trade tensions bolstered its appeal as a safe-haven asset. Bitcoin, meanwhile, is on pace to fall by almost 5% this week, with risk appetite battered and investors cautious ahead of a Federal Reserve meeting next week.