Gold Prices Edge Higher as U.S. Tariffs, Fed Policy and Iran Talks Shape Market Sentiment

Gold prices rebounded modestly in Asian trading on Wednesday after slipping in the previous session due to profit-taking, as investors weighed the impact of newly imposed U.S. tariffs and monitored upcoming U.S.-Iran nuclear talks. Spot gold climbed 0.8% to $5,184.55 per ounce, while U.S. gold futures advanced 0.5% to $5,203.10 per ounce. The precious metal had declined 1.6% on Tuesday, ending a four-day winning streak.

Market sentiment remains sensitive to trade policy developments. The United States began enforcing a temporary 10% global import tariff on Tuesday, with the Trump administration reportedly working toward raising the levy to 15%. The move follows a U.S. Supreme Court decision last week that struck down earlier broad tariffs imposed under emergency powers, prompting officials to reintroduce duties under alternative legal authority. The renewed tariff strategy has fueled concerns over global trade stability and rising inflation, both key drivers for gold prices.

Geopolitical risks are also supporting safe-haven demand. The U.S. and Iran are scheduled to hold a third round of nuclear talks in Geneva on Thursday, keeping investors cautious. Heightened geopolitical tensions typically increase demand for gold as a hedge against uncertainty.

However, gains in the yellow metal were limited by expectations that U.S. interest rates will remain elevated for longer. Two Federal Reserve officials indicated little urgency to adjust monetary policy, reinforcing a higher-for-longer rate outlook. Elevated interest rates generally pressure non-yielding assets like gold by increasing the opportunity cost of holding them.

A stronger U.S. dollar further capped gold’s upside. The U.S. Dollar Index remained steady after rising 0.1% in the previous session, making dollar-denominated commodities more expensive for international buyers.

Among other precious metals, silver prices surged 1.6% to $88.59 per ounce, while platinum gained 2.3% to $2,224.60 per ounce, reflecting broader strength across the metals market.