Gold Prices Rebound as Investors Weigh U.S. Tariffs and Geopolitical Risks

Gold Rebounds After Prior Session’s Decline

At 04:25 ET (09:25 GMT) on Wednesday, spot gold was up 0.9% at $5,187.64 an ounce, while U.S. gold futures gained 0.6% to $5,206.10 per ounce. The move followed a 1.6% fall in the previous session, which had ended a run of four consecutive days of gains.

The price action came as investors evaluated the economic implications of a new temporary 10% global import tariff that the United States began collecting on Tuesday. The Trump administration is working to raise this levy to 15%, a step that has added to uncertainty around global trade and inflation dynamics.

These measures followed a U.S. Supreme Court ruling last week that struck down earlier sweeping duties imposed under emergency powers. In response, Washington has moved to reintroduce tariffs under alternative legal authority, keeping trade policy in focus for commodity markets.

Geopolitical factors also underpinned interest in gold, with attention on a third round of talks between the United States and Iran scheduled for Thursday in Geneva over Tehran’s nuclear programme.

Higher-for-Longer Rate Outlook Caps Upside; Other Metals Advance

Despite the rebound, upside in gold remained limited by expectations that U.S. interest rates will stay elevated. Two Federal Reserve officials on Tuesday indicated little inclination to adjust the central bank’s policy stance in the near term, reinforcing a higher-for-longer rates outlook that typically weighs on non-yielding assets such as gold. A slightly weaker U.S. dollar, however, provided some support by making dollar-priced metals less expensive for overseas buyers.

In other precious metals, silver prices jumped nearly 3.5% to $90.55 per ounce, while platinum surged over 5% to $2,309.60 per ounce.

Base metals also firmed. Benchmark copper futures on the London Metal Exchange (LME) edged up 0.5% to $13,295.72 a ton, and U.S. copper futures rose 0.6% to $6.0295 a pound. According to analysts at ING, copper prices on the LME have moved back above $13,000 per ton as Chinese market participants returned from the Lunar New Year holidays on Tuesday, increasing import appetite. They noted that the market is showing early signs of demand recovery, but added that high inventory levels are likely to limit the pace of any near-term tightening. The next key indicator, they said, will be whether import arbitrage remains open and leads to sustained LME stock draws alongside a quicker-than-seasonal decline in SHFE inventories.

FAQ

Why did gold prices rise on Wednesday?
Gold prices rose as investors assessed the effects of newly imposed U.S. import tariffs, monitored upcoming U.S.-Iran nuclear talks, and reacted to a slightly weaker U.S. dollar, although gains were tempered by expectations of sustained high U.S. interest rates.

What are the key current levels for gold and other major metals?
As of 04:25 ET (09:25 GMT), spot gold traded at $5,187.64 an ounce and U.S. gold futures at $5,206.10 an ounce. Silver was at $90.55 per ounce, platinum at $2,309.60 per ounce, LME copper futures at $13,295.72 a ton, and U.S. copper futures at $6.0295 a pound.

How are U.S. tariffs affecting metals markets?
The United States has begun collecting a temporary 10% global import tariff, with plans to increase it to 15%, contributing to uncertainty around global trade and inflation and influencing sentiment across precious and base metal markets.

What did analysts at ING say about copper demand?
Analysts at ING stated that copper prices have moved back above $13,000 per ton on the LME as Chinese buyers returned from the Lunar New Year holidays, indicating early signs of demand recovery, though they cautioned that high inventories may limit the speed of any near-term market tightening.