TLDR
- Gold futures advanced 0.6% to reach $5,205.80/oz on Wednesday following President Trump’s address to Congress
- President Trump reinforced his commitment to tariffs, declaring “the deals are all done” while a new 10% universal import duty began Tuesday
- Administration officials are preparing to increase the global tariff rate to 15% following Supreme Court intervention
- JP Morgan elevated its gold forecast to $6,300/oz by late 2026 and boosted its long-term projection to $4,500/oz
- Silver surged more than 3% to $90.44/oz while platinum rallied 7% to reach $2,340.10/oz
Precious metals markets moved higher Wednesday morning as President Donald Trump utilized his State of the Union speech to reaffirm his tariff strategy and dismiss speculation about potential policy changes.
Gold futures (GC=F) advanced 0.6% to settle at $5,205.80 per ounce. The spot gold market registered a 0.7% increase to $5,180.91 per ounce.
The upward movement followed a challenging Tuesday session, during which gold retreated 1.6% after recording four consecutive days of positive performance.
During his Tuesday evening address to Congress, Trump stated that “the deals are all done,” dismissing any notion that he might soften his trade approach. He also criticized the Supreme Court’s involvement in his tariff policies as “unfortunate.”
The Supreme Court invalidated Trump’s sweeping emergency authority tariffs last Friday. In response, the administration quickly introduced a new 10% universal import duty utilizing Section 122 authority under the Trade Act of 1974.
That 10% levy became operational Tuesday. According to Bloomberg reports, the White House is currently preparing official documentation to elevate it to 15%. Trump mentioned the elevated rate Saturday but hasn’t formally enacted it yet.
The escalating trade tensions directed investors toward gold as a protective investment vehicle.
JP Morgan Issues $6,300 Gold Projection
JP Morgan released an optimistic analysis on gold Wednesday, elevating its end-2026 price projection to $6,300 per ounce. The financial institution also increased its long-term outlook to $4,500/oz, pointing to robust demand from central banking institutions and private investors.
A marginally softer U.S. dollar additionally supported gold Wednesday, reducing costs for international purchasers.
Nevertheless, gold’s upward momentum faced headwinds from interest rate projections. Two Federal Reserve officials indicated Tuesday that they perceive minimal justification for monetary policy adjustments in the near term, strengthening expectations for prolonged elevated rates. Such conditions typically pressure non-interest-bearing assets like gold.
U.S.-Iran nuclear negotiations scheduled for Thursday in Geneva are introducing additional geopolitical complexity that market participants are monitoring carefully.
Broader Metals Market Movement
Silver demonstrated robust 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 modest gains. London Metal Exchange benchmark copper futures climbed 0.5% to $13,292.0 per ton. U.S. copper futures increased 0.4% to $6.0162 per pound.
ING analysts observed that copper rebounded above the $13,000 per ton threshold as Chinese market participants resumed activity following Lunar New Year celebrations, strengthening import appetite.
ING emphasized that although preliminary indicators suggest demand is recovering, elevated inventory volumes will probably constrain the pace of market tightening.
According to ING, the critical indicator to monitor will be whether import arbitrage opportunities persist and generate consistent inventory reductions at the London Metal Exchange.
As of Wednesday morning, spot gold was quoted at $5,185.90 per ounce, registering a 0.8% gain, while U.S. gold futures stood at $5,203.62/oz.
