Joseph Dahrieh, Managing Principal at Tickmill

Gold prices were little changed on Wednesday, hovering close to their last high as investors reacted to economic data, persistent geopolitical tensions, and cautious signals from the Federal Reserve. The broader backdrop of global uncertainty continues to lend support to the precious metal.

Trade-related risks remain elevated after President Trump’s decision to double tariffs on steel and aluminum took effect. Market concerns were further stoked by mutual accusations between Washington and Beijing of breaching prior agreements, keeping markets on edge. Gold could remain exposed to any developments between the US and China.

At the same time, geopolitical tensions continue to weigh on sentiment. In Eastern Europe, hostilities between Russia and Ukraine show no sign of easing, while tensions with Iran resurfaced following Tehran’s rejection of a US nuclear proposal.

However, gold could come under pressure as Fed members reiterated a cautious monetary policy stance. Though markets continue to price in rate cuts later this year, the lack of urgency from policymakers could limit further upside for the bullion.