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As dawn broke over Asian trading floors, gold prices gasped for breath near $3,280—a feeble rebound flickering like a candle in a storm. The dual forces squeezing precious metals created an unprecedented policy vise: Trump's tariff deadline stoked haven demand while the Fed's hawkish chill froze gold's upside potential.

August 1 loomed as a Sword of Damocles over global traders. The Trump administration unleashed a tariff trifecta—15% on Korean imports, 25% on Indian goods, and a staggering 50% on Brazilian products.

According to Politico, the president stood ready to sign executive orders imposing tariffs on all non-compliant nations. Fear of trade war resurgence drove haven flows back to gold, lifting prices 0.8% from monthly lows to reclaim $3,300.

Yet the Fed's policy room quickly neutralized this warmth. A 9-2 vote held rates steady as Powell declared "no inclination toward September cuts." This hawkish deluge extinguished lingering easing hopes.

Governors Bowman and Waller's dissenting votes revealed deepening fractures within the Fed. With rate cuts pushed to 2025, gold's opportunity cost surged—its non-yielding nature became a critical liability in a 4.5% rate environment.

Copper's carnage offered a brutal footnote to this policy clash. U.S. copper futures plunged 19% intraday—a historic collapse—triggered by Trump's exemption of refined copper from 50% tariffs.

ING analysts noted: "Tariff rumors earlier this year caused massive copper shipments to U.S. ports. Now that oversupply may flood back out." Policy whiplash disrupted supply chains, hammering semi-finished copper products while sparing ores and cathodes.

The metals market fractured further. Platinum futures defied gravity with a 1.8% rally, showcasing haven appeal, while silver fell 1.4%, exposing industrial metal vulnerability.

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