Gold prices climbed on Wednesday, bouncing back from the previous session’s decline as investors evaluated the effects of newly introduced U.S. tariffs and looked ahead to upcoming U.S.-Iran negotiations later this week.
At 04:25 ET (09:25 GMT), spot gold rose 0.9% to $5,187.64 per ounce, while U.S. gold futures advanced 0.6% to $5,206.10 per ounce.
The precious metal had dropped 1.6% on Tuesday after posting gains across four consecutive sessions.
Investors assess new U.S. tariff developments
The United States began enforcing a temporary 10% global import tariff on Tuesday, with the Trump administration aiming to raise the duty to 15%, a move that has heightened concerns over global trade conditions and inflation risks.
The tariffs followed a U.S. Supreme Court decision last week that invalidated earlier sweeping duties imposed under emergency authority, prompting policymakers to reinstate tariffs using alternative legal mechanisms.
Geopolitical risks also remained in focus, as U.S. and Iranian officials are scheduled to meet Thursday in Geneva for a third round of discussions regarding Tehran’s nuclear programme.
Despite the rebound, gold’s gains were limited by expectations that U.S. interest rates will remain elevated for an extended period.
Two Federal Reserve officials indicated Tuesday that there is little urgency to adjust monetary policy in the near term, reinforcing expectations of a higher-for-longer rate environment that typically pressures non-yielding assets such as gold.
Precious metals rally while copper supported by improving demand signals
A modest pullback in the U.S. dollar also supported metals prices, making commodities priced in dollars more attractive to overseas buyers.
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 futures on the London Metal Exchange rising 0.5% to $13,295.72 per tonne 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,” ING analysts said 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.”