Gold prices rose on Wednesday, lifted by a softer dollar and heightened safe-haven demand amid uncertainty over U.S. tariffs and rising friction between Washington and Tehran. Spot gold rose 0.8% to $5,190.99 per ounce, as of 0841 GMT. U.S. gold futures for April delivery were up 0.7% at $5,210.40. Get the latest news from India and how it matters to the world with the Reuters India File newsletter. Sign up here. The U.S. dollar index (.DXY), opens new tab shed 0.1%, making greenback-priced bullion cheaper for other currency holders. Advertisement · Scroll to continue "Spot gold is being supported above the $5,000 level by the softer U.S. dollar, a muddied outlook on U.S. trade policy, and persistent geopolitical tensions," said Han Tan, chief market analyst at Bybit. "As long as these fundamental drivers remain intact, bullion bulls will be eager for a return towards record highs." Gold, a traditional safe-haven, does well during times of geopolitical and economic uncertainty. U.S. President Donald Trump said in his State of the Union speech that "almost all" countries and corporations want to stick to tariff and investment agreements previously made with Washington. Advertisement · Scroll to continue The country began collecting a temporary 10% global import tariff on Tuesday, but Washington was working to raise it to 15%, a White House official said. Meanwhile, U.S. envoys Steve Witkoff and Jared Kushner are slated to meet with an Iranian delegation for a third round of nuclear talks on Thursday in Geneva. Iran is close to a deal with China to purchase anti-ship cruise missiles, according to Reuters sources, which could target the U.S. naval forces that have assembled near the Iranian coast. Elsewhere, spot silver climbed 4.2% to $90.96 per ounce, a three-week high. "The path ahead (for silver) will be shaped by a more complex mix of monetary policy, inflation expectations, and U.S. dollar dynamics," said Rania Gule, Senior Market Analyst at XS.com. JP Morgan on Wednesday said demand from central banks and investors this year could push gold prices to $6,300 an ounce by end-2026. It also raised its long-term price forecast for gold to $4,500 per ounce. "With oil prices near a six-month high, the energy sector has outperformed in 2026, but can it accelerate further?
Spot platinum rose 5.8% to $2,293.69 per ounce, its highest point since February 4, while palladium added 2.8% to a three-week high of $1,817.22.
Reporting by Noel John in Bengaluru; editing by Philippa Fletcher
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