Gold crept up 1% to about $5,190 an ounce on Wednesday, regaining much of Tuesday’s losses as investors wrestled with a mix of trade drama and global uncertainty.
The spotlight is on US President Donald Trump, whose 10% global tariff took effect Tuesday, with plans to hike it to 15% in a bid to revive his tariff agenda after the Supreme Court struck down several previous levies.
On Monday, Trump warned that countries “playing games” with trade deals could face even higher tariffs.
Meanwhile, the world is watching the delicate US-Iran nuclear talks, with Tehran pledging to do “whatever it takes” to reach an agreement.
Even with these tensions, gold’s climb was modest. Expectations of a near-term Federal Reserve rate cut are fading, as officials see a steady labor market and persistent inflation, leaving traders cautious.
For now, gold is caught between the fear of conflict and the reality of a resilient economy, a safe haven, but one with limits.
