Gold Strengthens, JP Morgan Projects Potential to Break $6,300
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 8:50 a.m. US time, spot gold rose 0.8% to $5,185.90/oz, while gold futures rose 0.5% to $5,203.62/oz. Gold had previously fallen 1.6% on Tuesday after rallying for four consecutive sessions.
Gold's movements remain influenced by uncertainty over US trade policy. The US government began imposing a temporary 10% global import tariff on Tuesday, and the Trump administration is reportedly preparing to increase it to 15%. This change in tariff policy adds to uncertainty about global trade and inflation, especially after last week's Supreme Court ruling invalidated some of the previous tariffs, forcing Washington to pursue alternative legal avenues to impose import duties.
Geopolitical factors are also supporting safe-haven demand, with the US and Iran scheduled to hold a third round of talks on Tehran's nuclear program on Thursday in Geneva. A slight weakening of the US dollar is also helping gold, making the dollar-denominated precious metal more affordable for foreign buyers. However, gold's upside is still limited by expectations of persistently high US interest rates, after several Fed officials signaled little urgency to change policy in the near future.
On the projection side, JP Morgan believes demand from central banks and investors has the potential to push gold towards $6,300/oz by the end of 2026, while raising its long-term price projection to $4,500/oz.
In line with gold's strengthening, silver rose more than 3% to around $90.44/oz, and platinum jumped about 7% to $2,340.10/oz. Copper also gained slightly, supported by indications of recovering demand as Chinese participants returned to activity following the Lunar New Year holiday.
Source: Newsmaker.id
