Gold futures moved above the $5,200 mark on Wednesday, supported by ongoing trade uncertainty and geopolitical developments, even as expectations of near-term US rate cuts faded.
COMEX gold futures were trading at $5,227.1 per ounce, up $50.8 or 0.98% as of 11:24 AM IST, extending gains after recovering from the previous session’s profit-booking.
Spot gold hovered around $5,180 per ounce earlier in the day, recouping part of Tuesday’s losses. The metal had fallen more than 1% in the prior session after touching a three-week high, as traders locked in gains.
Safe-haven flows were triggered after US President Donald Trump’s new 10% global tariff came into effect on Tuesday, with the administration also working to raise it to 15%. Trump further warned that higher tariffs could be imposed on countries that “play games” with recent trade agreements, adding to policy uncertainty.
Markets are also closely tracking the resumption of US-Iran nuclear talks scheduled for Thursday. Iran stated it would do “whatever it takes” to secure a nuclear deal, keeping geopolitical risks elevated.
However, gains in bullion were capped as Federal Reserve officials signaled patience on rate policy. Fed’s Susan Collins indicated it may be appropriate to keep interest rates steady for some time, citing an improving labor market and persistent inflation risks.
Gold remains sensitive to trade policy shifts, geopolitical tensions and evolving interest rate expectations, with the $5,200 level emerging as a key psychological zone for traders.