Gold prices moved higher on Wednesday, recovering from losses in the previous session as investors evaluated the implications of newly introduced U.S. tariffs and looked ahead to upcoming talks between the United States and Iran later this week.
At 04:25 ET (09:25 GMT), spot gold climbed 0.9% to $5,187.64 per ounce, while U.S. gold futures rose 0.6% to $5,206.10 per ounce.
The precious metal had declined 1.6% on Tuesday following four consecutive sessions of gains.
Markets assess new U.S. tariff measures
The United States began implementing a temporary 10% global import tariff on Tuesday, with the Trump administration aiming to raise the rate to 15%, a development that has heightened uncertainty surrounding global trade and inflation prospects.
The move came after a U.S. Supreme Court ruling last week invalidated earlier broad tariffs imposed under emergency powers, prompting the government to reintroduce duties using alternative legal mechanisms.
Geopolitical developments also remained in focus, with U.S. and Iranian officials scheduled to hold a third round of negotiations in Geneva on Thursday concerning Tehran’s nuclear programme.
Despite the rebound, gold’s upside was limited by expectations that U.S. interest rates will remain elevated for longer.
Two Federal Reserve officials indicated on Tuesday that there is little urgency to adjust monetary policy in the near term, reinforcing a higher-for-longer rate outlook that typically pressures non-yielding assets such as gold.
Silver and platinum surge; copper supported by demand signals
A slightly weaker U.S. dollar also helped support metals prices, as dollar-denominated commodities become more affordable for international buyers when the currency softens.
Among other precious metals, silver surged nearly 3.5% to $90.55 per ounce, while platinum jumped more than 5% to $2,309.60 per ounce.
Copper prices also strengthened, with benchmark London Metal Exchange copper futures rising 0.5% to $13,295.72 per ton and U.S. copper futures gaining 0.6% to $6.0295 per pound.
“Copper prices on the LME have moved back above $13,000/t as Chinese participants return from the Lunar New Year holidays on Tuesday, increasing import appetite,” said analysts at ING, in a note.
“Overall, the market is showing early signs of demand recovery. Yet high inventory levels are likely to cap the pace of any near term tightening. The next key indicator will be whether the import arbitrage stays open and leads to sustained LME stock draws, accompanied by a quicker than seasonal decline in SHFE inventories.”
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