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, declaring “the deals are all done” as a new 10% universal import tariff became active on Tuesday
- Administration officials are preparing to escalate that tariff to 15% following the Supreme Court’s decision to invalidate previous duties
- JP Morgan issued an upgraded gold forecast of $6,300/oz for late 2026, while boosting its extended outlook to $4,500/oz
- Silver rallied more than 3% to $90.44/oz; platinum experienced a significant 7% surge to $2,340.10/oz
Precious metals markets experienced upward momentum Wednesday morning as President Donald Trump utilized his State of the Union platform to reaffirm his commitment to tariff policies, eliminating speculation about potential policy shifts.
Gold futures (GC=F) increased 0.6% to settle at $5,205.80 per ounce. The spot gold market showed even stronger performance, advancing 0.7% to $5,180.91 an ounce.
This upward trajectory followed a challenging Tuesday session, during which gold experienced a 1.6% decline after posting gains across four consecutive trading days.
During his Tuesday evening Congressional address, Trump declared that “the deals are all done,” firmly rejecting any notion that he might soften his trade policy approach. He also criticized the Supreme Court’s involvement in his tariff agenda, describing it as “unfortunate.”
The Supreme Court invalidated Trump’s sweeping emergency-authority tariffs last Friday. The administration responded swiftly, unveiling a new 10% universal import tariff leveraging Section 122 of the Trade Act of 1974.
That 10% levy took effect Tuesday. According to Bloomberg reports, the White House is currently preparing official documentation to increase it to 15%. Trump mentioned the higher rate on Saturday but hasn’t formally enacted it yet.
The continuing trade policy volatility drove investors toward gold as a protective refuge asset.
JP Morgan Issues Aggressive $6,300 Gold Projection
JP Morgan released an optimistic analysis on gold Wednesday, upgrading its end-2026 target to $6,300 per ounce. The financial institution also increased its extended-term projection to $4,500/oz, pointing to robust demand from both central banks and institutional investors.
A moderately softer U.S. dollar provided additional support for gold Wednesday, improving affordability for international purchasers.
Nevertheless, gold’s upward movement faced headwinds from interest rate projections. Two Federal Reserve officials indicated Tuesday that they anticipate minimal justification for policy adjustments in the near term, solidifying expectations for sustained elevated rates. Such conditions typically challenge non-interest-bearing assets like gold.
U.S.-Iran nuclear negotiations scheduled for Thursday in Geneva contribute another dimension of geopolitical risk that market participants are monitoring carefully.
Broader Precious Metals Rally
Silver delivered an impressive performance, climbing more than 3% to reach $90.44 per ounce.
Platinum experienced a dramatic 7% surge to $2,340.10 per ounce.
Copper also registered gains. 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 rebounded above $13,000 per ton as Chinese market participants resumed trading following Lunar New Year celebrations, enhancing import demand.
ING emphasized that while preliminary indicators suggest demand recovery, elevated inventory levels will probably restrict the pace of market tightening.
According to ING, the critical factor to monitor will be whether import arbitrage opportunities remain available and generate consistent inventory reductions at the London Metal Exchange.
As of Wednesday morning, spot gold was valued at $5,185.90 per ounce, representing a 0.8% increase, while U.S. gold futures stood at $5,203.62/oz.
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