Gold Rises, There's a Time Bomb Today
Gold (XAU/USD) returned to a positive trend in the Asian session, approaching the $5,200/oz area, driven by a combination of popular "safe haven" factors: a weakening dollar, hindering US tariffs, and tensions ahead of the geopolitical US-Iran summit.
The main driver came from hedging flows. The market remains cautious as US President Donald Trump's trade policy appears volatile, leading investors to seek safe assets—and gold is typically the first choice when risk sentiment falters.
Tariff concerns became even more apparent after the Supreme Court's decision to restrict some major tariff schemes, followed by the White House's imposition of a temporary 10% import surcharge for 150 days, effective February 24, 2026. At the same time, there are signals that the government is still working to increase tariffs to 15%, making it difficult for the market to "hold certainty" regarding the rules of the game.
On the geopolitical front, safe haven sentiment is strengthening as the third round of US-Iran nuclear negotiations takes place in Geneva on February 26, 2026, amid the looming threat of escalating risks in the Middle East. Any indication of stalled negotiations or rising tensions is usually quickly interpreted by the market as a reason to increase gold positions.
From a currency perspective, a weakening dollar provides a "red carpet" for gold, making bullion relatively cheaper for non-USD buyers. Furthermore, although the Fed has sounded cautious, the market still sees room for further interest rate cuts this year—which generally supports non-yielding assets like gold.
In conclusion, as long as tariffs remain on the table and geopolitical headlines remain hot, gold tends to remain a portfolio hedge. Its future direction will typically be determined by the tone of the Geneva negotiations and US data, which influence Fed policy expectations. (asd)
Source: Newsmaker.id
