Gold prices rise as tariff jitters aid haven demand; US-Iran talks loom

Investing02-25

Gold prices rose modestly in Asian trade on Wednesday after declining in the previous session amid profit booking, as investors assessed the impact of newly imposed U.S. tariffs, and awaited U.S.-Iran talks later this week.

Spot gold was last up 0.8% at $5,184.55 an ounce by 21:08 ET (02:08 GMT). U.S. Gold Futures gained 0.5% to $5,203.10/oz.

The yellow metal fell 1.6% on Tuesday after four straight sessions of gains.

The U.S. began collecting a temporary 10% global import tariff on Tuesday, with the Trump administration working to increase the levy to 15%, a move that has stoked uncertainty over global trade and inflation.

The tariff action followed a U.S. Supreme Court ruling last week that struck down earlier sweeping duties imposed under emergency powers, prompting Washington to reintroduce tariffs under alternative legal authority.

Geopolitical tensions also remained in focus, with the U.S. and Iran due to hold a third round of talks on Thursday in Geneva over Tehran’s nuclear programme.

However, gains in gold were capped by expectations that U.S. interest rates will remain elevated. Two Federal Reserve officials on Tuesday signalled little appetite to change the central bank’s policy stance in the near term, reinforcing a higher-for-longer rate outlook that typically weighs on non-yielding assets such as gold.

A stronger dollar added to pressure, making dollar-priced metals more expensive for overseas buyers after the U.S. currency extended recent gains.

The US Dollar Index was largely steady after edging up 0.1% on Tuesday.

In other precious metals, silver prices rose 1.6% to $88.59 per ounce, while platinum jumped 2.3% to $2,224.60/oz.

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