‘As long as these fundamental factors remain unchanged, bulls in the gold market will be eager to return to record highs,’ he added.
Geopolitical tensions underpin gold prices
Gold, the traditional safe haven, is performing strongly amid geopolitical and economic uncertainty.
In his State of the Union address, US President Donald Trump said that ‘almost all’ countries and corporations want to comply with the tariff and investment agreements previously concluded with Washington.
The United States began imposing a temporary global import tariff of 10 per cent on Tuesday. The rate remained unchanged despite Trump’s announcement over the weekend that it would be increased to 15 per cent. Washington is reportedly preparing the increase, according to a White House official.
Meanwhile, US envoys Steve Witkoff and Jared Kushner are scheduled to meet the Iranian delegation in Geneva on Thursday for the third round of nuclear talks. According to Reuters sources, Iran is close to an agreement with China to purchase anti-ship missiles that could be aimed at US naval forces assembled near the Iranian coast.
Other metals also advance
The spot price of silver rose by 4.2 per cent to nearly $91 an ounce, a three-week high. Platinum climbed 5.8 per cent to almost $2,294 per ounce, its highest level since 4 February, while palladium gained 2.8 per cent to around $1,817, also a three-week high.
‘Future developments (in silver prices) will be influenced by a more complex combination of monetary policy, inflation expectations and US dollar dynamics,’ said Rania Gule, senior market analyst at XS.com.
US bank JPMorgan said on Wednesday that demand from central banks and investors could push gold prices to $6,300 per ounce by the end of 2026. At the same time, it raised its long-term gold price forecast to $4,500 per ounce.
(reuters, sak)
