Tariff concerns boost safe-haven demand, gold prices rise; US-Iran negotiations imminent

2026-02-25 04:06:08

Investing.com - On Wednesday during Asian trading hours, gold prices rose slightly after declining in the previous trading session due to profit-taking. Investors are assessing the impact of the new U.S. tariffs and awaiting the U.S.-Iran negotiations later this week.

As of 21:08 Eastern Time (02:08 Beijing Time), spot gold increased by 0.8% to $5,184.55 per ounce. U.S. gold futures rose by 0.5% to $5,203.10 per ounce.

On Tuesday, gold fell 1.6% after rising for four consecutive trading days.

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The U.S. began imposing a temporary 10% global import tariff on Tuesday, with the Trump administration working to raise this rate to 15%, sparking uncertainty about global trade and inflation.

This tariff action follows a Supreme Court ruling last week that overturned previous tariffs imposed under emergency powers, prompting Washington to reimpose tariffs under alternative legal authority.

Geopolitical tensions remain in focus, as the U.S. and Iran are set to hold their third round of talks in Geneva on Thursday regarding Tehran’s nuclear program.

However, market expectations that U.S. interest rates will stay high have limited gold’s gains. Two Federal Reserve officials stated on Tuesday that there is little willingness to change the central bank’s policy stance in the near term, reinforcing the outlook that rates will remain elevated for an extended period, which typically puts pressure on non-yielding assets like gold.

A strengthening dollar also added pressure. After continuing its recent rally, dollar-denominated metals became more expensive for overseas buyers.

The dollar index rose slightly by 0.1% on Tuesday and remained mostly steady.

In other precious metals, silver increased by 1.6% to $88.59 per ounce, while platinum surged by 2.3% to $2,224.60 per ounce.

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