Gold climbs on softer dollar, safe-haven bid amid US tariff uncertainty

NEW YORK: Gold prices rose on Wednesday, lifted by a softer dollar and heightened safe-haven demand amid uncertainty over US tariffs and growing friction between Washington and Tehran.

Spot gold rose 0.5percent to USD5,175.00 per ounce, as of 1106 GMT. US gold futures for April delivery were up 0.5percent at USD5,193.90. The US dollar index was down, making greenback-priced bullion cheaper for other currency holders.

“Spot gold is being supported above the USD5,000 level by the softer US dollar, a muddied outlook on US trade policy, and persistent geopolitical tensions,” said Han Tan, chief market analyst at Bybit. “As long as these fundamental drivers remain intact, bullion bulls will be eager for a return towards record highs.”

Gold, a traditional safe-haven, does well during times of geopolitical and economic uncertainty. US President Donald Trump said in his State of the Union speech that “almost all” countries and corporations want to stick to tariff and investment agreements previously made with Washington. The country began collecting a temporary 10percent global import tariff on Tuesday, but Washington was working to raise it to 15percent, a White House official said.

Meanwhile, US envoys Steve Witkoff and Jared Kushner are slated to meet with an Iranian delegation for a third round of nuclear talks on Thursday in Geneva. Iran is nearing a deal with China to purchase anti-ship cruise missiles, according to Reuters sources, which could target US naval forces that have assembled near the Iranian coast. Spot silver climbed 3.5percent to USD90.40 per ounce, a three-week high.

“The path ahead (for silver) will be shaped by a more complex mix of monetary policy, inflation expectations, and US dollar dynamics,” said Rania Gule, Senior Market Analyst at XS.com. JP Morgan on Wednesday said demand from central banks and investors this year could push gold prices to USD6,300/oz by end-2026.

It also raised its long-term price forecast for gold to USD4,500 per ounce. Spot platinum rose 5.4percent to USD2,285.64 per ounce, its highest point since February 4, while palladium added 2.7percent to USD1,816.21.