Gold prices moved little in Asian trade on Friday, remaining close to record highs even as U.S. President Donald Trump postponed plans for reciprocal tariffs, sparking a risk-on move in financial markets.

But steep losses in the dollar aided gold, as the greenback gave up a bulk of its recent gains on Trump’s move. The dollar was also dented by some mixed inflation data, which drove up optimism over lower interest rates this year. 

Weakness in the dollar also helped gold move past diminished safe haven demand, as Trump flagged potential peace talks over Russia and Ukraine. 

Spot gold steadied at $2,928.91 an ounce, while gold futures expiring in April rose 0.4% to $2,957.19 an ounce by 00:22 ET (05:22 GMT). Spot gold remained close to a record high of $2,943.25/oz hit earlier this week. 

Gold heads for seventh positive week as haven demand persists 

Gold prices were set to add about 2.4% this week- their seventh consecutive week of gains, as demand for safe havens remained in play amid uncertainty over Trump’s policies.

Trump on Thursday signed an executive order exploring potential reciprocal tariffs on major U.S. trading partners, which will be imposed by April, as compared to earlier threats that they would come this week.

Market sentiment improved on this notion, given that the April deadline gives countries more time to negotiate with Washington.

But Trump still kept up his harsh trade rhetoric, having imposed 25% duties on steel and aluminum imports earlier this week.

Uncertainty over Trump kept safe haven bids for gold squarely in play, even as near-term risk sentiment appeared to have improved.

Copper, industrial metals benefit from tariff speculation

Industrial metals surged this week, as Trump’s tariffs on the sector spurred bets that U.S. companies will struggle to source domestic supplies. While copper was not subject to any tariffs, traders were seen betting that the red metal will also eventually face duties.

Additionally, China also imposed export controls on several key materials as retaliation for Trump’s tariffs, drumming up hopes of a supply shortfall. 

Benchmark copper futures on the London Metal Exchange rose 0.9% to $9,572.05 a ton, while March copper futures rose 0.4% to $4.8045 a pound.