TLDR
- Gold futures advanced 0.6% to reach $5,205.80/oz on Wednesday following President Trump’s State of the Union speech
- President Trump maintained his position on tariffs, stating “the deals are all done,” while a new 10% universal import duty became active on Tuesday
- Officials are preparing to increase that tariff rate to 15% following the Supreme Court’s decision to invalidate previous levies
- JP Morgan elevated its gold price projection to $6,300/oz for the conclusion of 2026, alongside raising its extended-term outlook to $4,500/oz
- Silver experienced a surge exceeding 3% to reach $90.44/oz; platinum saw a dramatic 7% increase to $2,340.10/oz
Precious metals gained ground on Wednesday morning as President Donald Trump utilized his State of the Union speech to reinforce his commitment to tariffs, making clear that no policy shift was forthcoming.
Gold futures (GC=F) registered a 0.6% increase to $5,205.80 per ounce. Meanwhile, spot gold appreciated 0.7% to $5,180.91 an ounce.
The upward movement followed a challenging Tuesday session, during which gold declined 1.6% after posting gains for four consecutive trading days.
During his Tuesday evening address to Congress, Trump declared that “the deals are all done,” rejecting any notion that he might soften his trade policy approach. He also criticized the Supreme Court, describing its involvement in his tariff strategy as “unfortunate.”
Last Friday, the court invalidated Trump’s expansive emergency-powers tariffs. The administration responded within hours by introducing a new 10% universal import tariff utilizing Section 122 authority from the Trade Act of 1974.
That 10% levy became operational on Tuesday. According to Bloomberg reports, the White House is currently preparing an official directive to elevate it to 15%. Trump mentioned that increased rate on Saturday but hasn’t formally enacted it yet.
The escalating trade tensions drove investors toward gold as a protective asset during uncertain times.
JP Morgan Sees Gold Hitting $6,300
JP Morgan released an optimistic assessment of gold on Wednesday, upgrading its end-2026 price projection to $6,300 per ounce. The financial institution also increased its extended-term prediction to $4,500/oz, pointing to robust demand from both central banks and institutional investors.
A marginally softer U.S. dollar additionally supported gold prices on Wednesday, reducing costs for international purchasers.
Nevertheless, gold’s upward movement faced constraints from interest rate projections. Two Federal Reserve representatives indicated on Tuesday that they perceive minimal justification for adjusting monetary policy in the near term, reinforcing expectations of sustained elevated rates. Such conditions typically pressure non-interest-bearing assets like gold.
U.S.-Iran nuclear negotiations scheduled for Thursday in Geneva introduce another element of geopolitical uncertainty that market participants are monitoring attentively.
Other Metals Also Moving
Silver posted an impressive performance, climbing more than 3% to $90.44 per ounce.
Platinum experienced a substantial 7% rally to $2,340.10 per ounce.
Copper also advanced modestly. LME benchmark copper futures increased 0.5% to $13,292.0 a ton. U.S. copper futures appreciated 0.4% to $6.0162 a pound.
ING analysts observed that copper climbed back above the $13,000 per ton threshold as Chinese market participants resumed trading following Lunar New Year celebrations, strengthening import demand.
ING further commented that although preliminary indicators of demand recovery are emerging, elevated inventory levels will probably restrict how quickly the market can tighten.
According to ING, the critical indicator to monitor will be whether import arbitrage opportunities remain available and result in continuous inventory reductions at the London Metal Exchange.
As of Wednesday morning, spot gold was changing hands at $5,185.90 per ounce, up 0.8%, with U.S. gold futures positioned at $5,203.62/oz.
