Metals gained after reports that Trump would delay the release of US tariffs

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(Bloomberg) — Copper rose 0.9% and gold edged higher on Donald Trump’s inauguration day, with the new U.S. president refraining from immediately imposing heavy tariffs.

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The dollar fell 1.2% on Bloomberg after a Wall Street Journal report said Trump would hold off on new tariffs on his first day in office. A weak dollar makes steel cheaper in other currencies. Gold and copper premiums on the New York Comex narrowed after the report, with U.S. metals prices rising more than other global benchmarks on the threat of tariffs.

Investors are watching for more geopolitical tensions after Trump took aim at some traditional allies, including Canada, Mexico and Europe, in the run-up to his inauguration. While that could boost the price of gold as a safe haven, it could also boost the US dollar, which would lead to a price headwind.

Spot gold was up 0.2% at $2,708.21 an ounce at 2:37 p.m. in New York, following three-week gains. Silver and platinum rose, palladium fell. On the London Metal Exchange, copper closed at 9,275 metric tonnes, while other industrial metals also settled higher.