Gold's Glittering Rise Amidst Global Uncertainties

Gold prices climbed as a softer dollar and escalating geopolitical tensions drove safe-haven demand. Uncertainty over U.S. tariffs and global tensions, particularly between Washington and Tehran, contributed to the rise. With central bank demand projected to push prices further, gold remains a stable choice amidst volatility.

Gold prices surged on Wednesday, buoyed by the weakening U.S. dollar and heightened demand for safe-haven assets in the face of geopolitical tension. Specifically, the ongoing friction between Washington and Tehran, along with uncertainty over U.S. tariffs, have reinforced gold's appeal.

Spot gold reached $5,175.00 per ounce, reflecting a 0.5% increase, and U.S. gold futures for April delivery saw a similar uptick. The falling dollar index has made bullion more attractive for holders of other currencies, and analysts suggest that continued geopolitical strife will bolster gold prices.

The U.S. is currently increasing its global import tariff from 10% to 15%, adding to economic volatility. Meanwhile, discussions between U.S. and Iranian representatives continue amidst reports of Iran's potential missile deal with China. As central bank demand remains strong, analysts predict gold prices could hit $6,300 by 2026. Concurrently, silver, platinum, and palladium have also seen notable price rises.

(With inputs from agencies.)