Gold prices rose on Wednesday, supported by a weaker dollar and stronger demand for safe-haven assets amid uncertainty over U.S. tariffs and growing friction between the U.S. and Iran.
As of 0841 GMT, spot gold was up 0.8% at $5,190.99 an ounce. U.S. gold futures for April rose 0.7% to $5,210.40.
The US dollar index fell 0.1%, making US dollar-priced bullion cheaper for holders of other currencies.
“A weaker US dollar, a weaker US trade policy outlook and persistent geopolitical tensions are supporting spot gold above $5,000,” said Han Tan, chief market analyst at Bybit.
“As long as these fundamental factors remain intact, gold bulls will be eager for a rally towards record highs.”
Gold, a traditional safe-haven asset, performs well in times of geopolitical and economic uncertainty.
US President Donald Trump said in his State of the Union address that he wants “almost every” country and company to honor previous tariff and investment agreements with Washington.
The country began collecting a temporary 10% global import tariff on Tuesday, but the U.S. government is working to raise it to 15%, a White House official said.
Meanwhile, US special envoys Steve Witkoff and Jared Kushner are scheduled to meet with the Iranian delegation in Geneva on Thursday for the third round of nuclear negotiations.
Reuters sources say Iran is close to a deal with China to buy anti-ship cruise missiles, which could target the US Navy amassed near Iran’s coast.
Elsewhere, spot silver rose 4.2% to $90.96 an ounce, a three-week high.
“The path forward (for silver) will be shaped by a more complex combination of monetary policy, inflation expectations and USD trends,” said Rania Gul, senior market analyst at XS.com.
JPMorgan said Wednesday that demand from central banks and investors this year could push gold prices to $6,300 an ounce by the end of 2026. It also raised its long-term price forecast for gold to $4,500 per ounce.
Spot platinum rose 5.8% to $2,293.69 an ounce, its highest since February 4, while palladium rose 2.8% to a three-week high of $1,817.22.
