Gold Soars Amid Inflation Fears and U.S.-Iran Tensions

Gold prices climbed on Wednesday as investors turned to safe-haven assets in response to inflation concerns fueled by tariff changes and ongoing U.S.-Iran tensions. Spot gold rose by 0.5% to $5,172.17 per ounce, reflecting market anxieties and the shifting economic landscape.

Analysts point to the inflationary pressures from tariffs and high oil prices as primary drivers for the surge in gold prices. Bart Melek, global head of commodity strategy at TD Securities, highlighted the inflation impact and noted investor hedging as factors boosting gold demand. Meanwhile, geopolitical tensions escalated as President Trump, in his State of the Union address, reiterated his stance against Iran acquiring nuclear capabilities.

Investors are cautiously optimistic about gold's trajectory, factoring in potential short-term price consolidation. However, institutions like Bank of America anticipate gold reaching $6,000/oz within 12 months, given current global uncertainties. Silver also climbed, hitting a three-week peak, while platinum and palladium saw significant gains.