Gold Prices Surge Amid Dollar Dip and Geopolitical Tensions

Gold prices surged on Wednesday as a softer U.S. dollar and increased safe-haven demand fueled by geopolitical tensions lifted the precious metal. Spot gold rose by 0.8% to $5,190.99 an ounce at 0841 GMT, while U.S. gold futures for April increased by 0.7% to $5,210.40.

The decline in the U.S. dollar index by 0.1% made gold cheaper for holders of other currencies, further supporting bullion above the $5,000 mark. Trade policy uncertainties and persistent geopolitical tensions continue to act as drivers for gold's upward trend, as noted by market analyst Han Tan.

Meanwhile, spot silver jumped 4.2% to $90.96 per ounce, marking a three-week high, with analysts citing monetary policy and inflation expectations as influencing factors. JP Morgan forecasts gold prices could reach $6,300 per ounce by the end of 2026, driven by central bank and investor demand.