Gold Prices Rise as Traders Measure Tariff Uncertainty and Middle East Risks

Gold prices raised $5,000 per ounce as the dollar weakens and traders assess US tariff uncertainty and rising Middle East tensions, indicating potential long-term market shifts.

Gold prices increased as the dollar declined and traders considered the uncertainty around US import tariffs and tensions in the Middle East. After recovering more than half of the losses incurred during a historic two-day collapse at the beginning of the month, gold has stabilized above $5,000 per ounce.

Bullion recovered losses from a 1.6% drop in the previous session, rising as much as 1.3% on Wednesday, February 25, 2026. Tensions over an American military buildup ahead of this week's next round of nuclear talks with Iran, along with a lack of clarity regarding US trade policies, have helped the metal in recent sessions.

Yuxuan Tang, head of macro strategy for Asia at JP Morgan Private Bank stated that the rise seemed like “a breakout to the upside is in the making.” Tariff uncertainty and Iran risk are among the factors that “may prove sufficient to catalyze a more sustained shift,” she added. David Wilson, director of commodities strategy at BNP Paribas SA, said that the rise is going to have dramatic implications for the US budget deficit, the US dollar and Treasuries, referring to the potential refunds.

In the United States, Donald Trump's broad-based 10% import charge went into force Tuesday, following a Supreme Court verdict that overturned his previous reciprocal tariff policy. While the president has threatened to increase the figure to 15%, he has not issued an official order.

The Trump administration is preparing a series of national security investigations into the impact of particular imports on commodities such as batteries and industrial chemicals, which could lead to further taxes. Meanwhile, some importers are requesting tariff compensations from the government.