Market Caution Deepens as Trump’s Tariff Threats Fuel Safe-Haven Demand

11 July 2025, 05:41

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Key highlights:

*U.S. equity markets climbed in a quiet session, though investor sentiment turned cautious amid escalating trade tensions.

*The U.S. announced plans to extend 50% copper tariffs to include semi-finished products vital for power grids, defense, and tech infrastructure (e.g., wires, sheets, tubes, plates).

Market summary:

Wall Street extended gains in a subdued trading session as investor caution intensified amid growing concerns over renewed trade tensions. Traditional safe-haven assets, including gold, the Japanese yen, and the Swiss franc, saw increased demand as market participants weighed the potential impact of the Trump administration’s latest tariff proposals.

The White House recently announced plans to impose a 50% tariff on imported copper, and reports now indicate an expansion of tariffs to semi-finished products essential to critical sectors such as power grids, defense, and data centers. The proposed measures could target key materials, including wires, sheets, tubes, and plates.

Market uncertainty has heightened following reports that the U.S. has notified major trading partners of impending tariff adjustments in recent days. The shift toward sector-specific trade restrictions has raised fears of escalating trade frictions, potentially weakening risk sentiment and reinforcing demand for defensive assets.

Investors remain vigilant as further developments in trade policy could drive renewed volatility across global markets.

Technical Analysis

XAUUSD, H4:

Gold prices closed higher for the second consecutive session and extended gains during Friday’s Asian trading, erasing the losses seen earlier in the week. The precious metal found solid support above its downtrend line and is now attempting to challenge its previous high near the $3,340 mark. A decisive break above this level would signal renewed bullish momentum for gold.

The technical backdrop also points to a potential shift in sentiment. The RSI has gained traction and is edging higher, moving away from previous weakness and approaching overbought territory. Meanwhile, the MACD is on the verge of crossing back above the zero line, suggesting that bearish momentum is fading and a fresh bullish phase may be underway.

Resistance Levels: 3380.00, 3480.00
Support Levels: 3300.00, 3225.00

Copper, H4

Copper prices, after surging more than 10% in the previous session, remain anchored near record highs, with bullish momentum still intact. The sustained strength suggests the metal could push into uncharted territory. However, the psychological resistance at the $6.00 mark looms large, raising the risk of a potential pullback or false breakout as prices approach this level.

Momentum indicators signal caution. The RSI remains deep in overbought territory, while the MACD shows signs of topping out, indicating that a short-term correction may be on the horizon.

Resistance Levels: 5.670, 5.875
Support Levels: 5.498, 5.350