Gold prices moved higher on Wednesday, recovering from the previous session’s decline as investors evaluated the impact of newly introduced U.S. tariffs and monitored upcoming U.S.–Iran negotiations later this week.
At 08:50 ET (13:50 GMT), spot gold advanced 0.8% to $5,185.90 per ounce, while U.S. gold futures climbed 0.5% to $5,203.62 per ounce. The rebound followed a 1.6% drop on Tuesday, which ended a four-day winning streak for the precious metal.
Fresh U.S. tariffs add uncertainty to markets
The United States began collecting a temporary 10% global import tariff on Tuesday. The Trump administration is also working toward raising the levy to 15%, a move that has heightened concerns about global trade flows and inflation pressures.
The decision came after the U.S. Supreme Court struck down earlier broad tariffs imposed under emergency powers, prompting Washington to reintroduce duties using alternative legal mechanisms. The renewed trade measures have added another layer of uncertainty for global markets.
Geopolitical risks remain in focus as well. The United States and Iran are scheduled to hold a third round of talks on Thursday in Geneva regarding Tehran’s nuclear programme. Investors are closely watching developments, as any escalation or breakthrough could influence safe-haven demand.
A slightly weaker U.S. dollar also supported gold prices, as a softer greenback makes dollar-denominated commodities more affordable for overseas buyers.
Federal Reserve outlook limits upside
Despite the rebound, expectations that U.S. interest rates will stay elevated continue to cap gains in gold. Two Federal Reserve officials signalled on Tuesday that there is little urgency to adjust the current policy stance, reinforcing a “higher-for-longer” rate outlook.
Higher interest rates typically weigh on non-yielding assets such as gold, as they increase the opportunity cost of holding bullion.
JP Morgan forecasts further gains in gold
JP Morgan expects strong demand from central banks and investors to drive gold prices significantly higher over the coming years. In a note published Wednesday, the bank projected that gold could reach $6,300 per ounce by the end of 2026. It also lifted its long-term forecast to $4,500 per ounce.
The bullish outlook reflects sustained buying interest from official institutions and continued investor demand amid geopolitical and macroeconomic uncertainty.
Silver and platinum surge; copper shows recovery signs
Other precious metals posted strong gains. Silver jumped more than 3% to $90.44 per ounce, while platinum surged 7% to $2,340.10 per ounce.
In base metals, benchmark copper futures on the London Metal Exchange rose 0.5% to $13,292 per ton, and U.S. copper futures increased 0.4% to $6.0162 per pound.
Analysts at ING noted that copper prices have climbed back above $13,000 per ton as Chinese market participants returned from Lunar New Year holidays, boosting import demand. While early signs of demand recovery are emerging, elevated inventory levels could limit near-term tightening. The next key signal will be whether sustained imports lead to consistent stock drawdowns on the London Metal Exchange and a faster-than-seasonal decline in SHFE inventories.
