Gold rose early Wednesday triggered by investor uncertainty around both U.S. tariff policy and Middle East geopolitical risks, with an additional boost from a softer dollar.
The yellow metal remained elevated above $5,100 an ounce on haven demand and a weak dollar. U.S. President Donald Trump on Tuesday chastised the U.S. Supreme Court for its decision last week to overturn his global tariffs and also vowed that Iran wouldn’t obtain a nuclear weapon in his State of the Union address to both houses of Congress.
The weaker dollar made precious metals, which are denominated in the U.S. currency, more attractive investments to holders of other currencies.
April gold futures fell 0.9% Tuesday to settle at $5,176.30 an ounce on Comex but are up 1.9% this week. Bullion is up 9.1% so far this month after surging 9.3% in January and rising 2% in December. It rallied 64% last year. The April contract is currently up $19.60 (+0.38%) an ounce to $5195.90 and the DG spot price is $5189.90.
Trump said in his prime time address to Congress and the nation that he would prefer a diplomatic solution to a standoff in Iran, but didn’t provide details. And some new 10% tariffs are set to go into effect.
Recent economic data, including last week’s release of the minutes of the January Federal Reserve meeting, have signaled that the central bank may be slow to cut interest rates as Trump has demanded. Lower interest rates are considered bullish for gold, making the yellow metal a more attractive alternate investment. The central bank kept interest rates unchanged last month after three previous rate cuts.
Almost all the investors tracked by the CME FedWatch Tool are betting that the Fed will keep interest rates unchanged again in March. The Fed reduced interest rates for a third consecutive time in December to 3.50% to 3.75%. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
A key inflation measure – the producer price index – is due out with a delayed January report on Friday and may provide further direction to investors. Data released last week showed fourth-quarter U.S. GDP badly missed analysts’ estimates, coming in at an annual rate of 1.4%, compared with a consensus estimate for a 2.5% gain.Consumer spending also slowed. But the central bank’s favorite inflation measure, the personal consumption expenditures price index, came in around expectations for January.
May silver futures rose 1.1% Tuesday to settle at $88.13 an ounce on Comex, and the front-month contract added 7% so far this week. It touched a record above $115 in January. Silver is up 12% this month after gaining 11% in January and climbing 24% in December. It rose 141% last year. The May contract is currently up $2.515 (+2.85%) an ounce to $90.645 and the DG spot price is $90.51.
Spot palladium increased 2.6% Tuesday to $1,805.50 an ounce and is up 2.2% this week. Palladium is up 9.2% this month after advancing 2.4% in January and increasing 11% in December. Palladium gained 74% last year. The current DG spot price is up $24.90 to $1818.50.
Spot platinum rose 1.4% Tuesday to $2,183.80 an ounce and is up 0.9% this week. It’s up 6.2% this month after gaining 1.4% in January and surging 22% in December. Platinum increased 122% in 2025. The DG spot price is currently up $120.90 an ounce to $2305.20.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.