Gold Strengthens, US Tariffs and US-Iran Agenda Renewed as Factors
Gold prices strengthened on Wednesday (February 25th), rebounding after weakening in the previous session, as investors assessed the impact of new US import tariffs and awaited the continuation of US-Iran talks this week.
At 4:25 a.m. US time, spot gold rose 0.9% to $5,187.64/oz, while US gold futures rose 0.6% to $5,206.10/oz. Gold had previously fallen 1.6% on Tuesday after rallying for four consecutive sessions.
The main support came from US trade policy. The US government began levying a temporary 10% global import tariff on Tuesday and is preparing to raise it to 15%. This move has fueled renewed uncertainty about the outlook for global trade and inflation, especially after last week's Supreme Court ruling invalidated part of the previous tariff scheme, allowing Washington to reinstate tariffs through alternative legal channels.
Geopolitically, the market also remains focused on Middle East risks ahead of the third round of US-Iran talks on Thursday in Geneva regarding Tehran's nuclear program. However, gold's gains are still being held back by expectations that US interest rates will remain high for longer.
Meanwhile, two Federal Reserve officials on Tuesday signaled caution about changing policy stance anytime soon—a condition that typically hinders gold, as it offers no yield.
In other metals markets, a slight weakening of the US dollar also supported the commodity rally. Silver jumped nearly 3.5% to $90.55/oz, while platinum surged more than 5% to $2,309.60/oz. Copper also strengthened, with the LME benchmark contract rising 0.5% to $13,295.72/ton, driven by indications of recovering demand as Chinese participants returned to work after the Lunar New Year holiday.
However, persistently high inventories have the potential to limit the pace of gains in the short term.
Source: Newsmaker.id
