Gold gains on tariff jitters; oil steadies near seven-month highs before United States–Iran talks.

Gold price

Gold edged higher in Asian trading on Wednesday, recovering slightly after the prior session’s pullback driven by profit-taking, as markets weighed the effects of newly enacted U.S. tariffs and looked ahead to upcoming U.S.–Iran negotiations later this week.

Spot gold climbed 0.8% to $5,184.55 per ounce as of 21:08 ET (02:08 GMT), while U.S. gold futures advanced 0.5% to $5,203.10 an ounce. The metal had dropped 1.6% on Tuesday, ending a four-day winning streak.

On Tuesday, the U.S. began enforcing a temporary 10% blanket import tariff, with the Trump administration aiming to raise it to 15%. The move has heightened concerns about global trade disruptions and inflationary pressures. This action came after a U.S. Supreme Court decision last week invalidated earlier broad tariffs introduced under emergency powers, prompting the government to reinstate duties using alternative legal grounds.

Investors also monitored geopolitical developments, as Washington and Tehran are scheduled to hold a third round of nuclear discussions in Geneva on Thursday.

Despite the rebound, gold’s upside remained limited amid expectations that U.S. interest rates will stay higher for longer. Two Federal Reserve officials indicated on Tuesday that there is little urgency to adjust monetary policy, reinforcing a rate outlook that tends to weigh on non-yielding assets like gold.

Additional pressure came from a firmer U.S. dollar, which makes commodities priced in dollars more expensive for foreign buyers. The U.S. Dollar Index was broadly unchanged after rising 0.1% in the previous session.

Among other precious metals, silver gained 1.6% to $88.59 per ounce, while platinum surged 2.3% to $2,224.60 an ounce.

Oil price

Oil prices stayed close to seven-month peaks on Wednesday, as fears of potential U.S.–Iran military confrontation that could disrupt crude supplies kept investors cautious ahead of fresh talks scheduled for Thursday.

Brent crude rose 43 cents, or 0.6%, to $71.20 per barrel by 0400 GMT, while WTI gained 38 cents, or 0.6%, to $66.01. Brent touched its highest level since July 31 last week, and WTI reached its strongest point since August 4 earlier this week. Both benchmarks have remained elevated as Washington deployed additional military assets to the Middle East in an effort to pressure Tehran into negotiations over its nuclear and ballistic missile programs.

A prolonged conflict could threaten exports from Iran—the third-largest producer within Organization of the Petroleum Exporting Countries—as well as other key producers in the region. Analysts at ING noted that persistent uncertainty is likely to keep a significant geopolitical risk premium embedded in prices, leaving markets highly responsive to new developments.

U.S. representatives Steve Witkoff and Jared Kushner are expected to meet Iranian officials in Geneva on Thursday for a third round of negotiations. Iran’s Foreign Minister Abbas Araqchi said a deal is achievable, provided diplomacy takes precedence. Meanwhile, Donald Trump has warned of “very bad consequences” if no agreement is reached, with uncertainty remaining over whether Iran’s potential concessions would satisfy Washington’s demand for zero uranium enrichment, according to IG analyst Tony Sycamore.

Heightened tensions have also coincided with reports that Iran and China are advancing discussions over the purchase of Chinese anti-ship cruise missiles, which could pose a threat to U.S. naval forces stationed near Iran’s coastline. Experts say such weapons would significantly bolster Tehran’s strike capabilities.

Trump is set to address Congress in his State of the Union speech on Tuesday evening, where he is expected to outline his Iran strategy, though specific details have not been disclosed.

Beyond geopolitics, traders are monitoring supply-demand dynamics. The American Petroleum Institute reportedly showed a sharp 11.43-million-barrel increase in U.S. crude inventories for the week ended February 20, even as gasoline and distillate stocks declined. Official data from the U.S. Energy Information Administration is due later Wednesday.