Gold surged toward $5,200 an ounce on Wednesday while the dollar declined as traders weighed the risk of possible military escalation in the Middle East ahead of nuclear talks between the United States and Iran this week.
Traders were also reacting to President Trump’s annual State of the Union (SOTU) address to Congress.
Spot gold traded up 0.8 percent at $5,187.20 an ounce, after having touched a high of 5,210.57 earlier. U.S. gold futures were up 0.6 percent at $5,204.59.
The dollar index was a tad lower against its major peers, making bullion cheaper for other currency holders.
As new global tariffs take effect at 10 percent, U.S. President Donald Trump slammed last week’s Supreme Court tariff decision as “very unfortunate,” adding that U.S. trading partners “want to keep the deal that they already made” with his administration.
In his State of the Union address, Trump also said that the tariffs paid by foreign countries will replace the modern-day system of income tax.
“As time goes by, I believe that tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” Trump said.
Market Analysis
Gold Gains On Softer Dollar After Trump’s State Of The Union Address
2026-02-25 09:44:59
