(RTTNews) – Gold prices traded higher on Wednesday, extending gains for a fourth consecutive session and hitting a two-week high as investors reacted to escalating Middle East tensions and looked ahead to next week’s Federal Reserve meeting.
Tariff worries also returned to the fore as U.S. President Donald Trump unveiled a phased tariff plan for imported generic medicines after imposing a 50 percent tariff on a wide range of goods imported from Canada.
Spot gold jumped 0.9 percent to $4,114.81 an ounce as central bank gold purchases hit historic highs amid rising geopolitical risks and inflation concerns. U.S. gold futures were up more than 1 percent at $4,118.60 despite pressure from hawkish Fed pricing.
The U.S. dollar index held near a one-week high on the back of rising U.S.-Iran tensions and concerns over new U.S. trade tariffs.
Amid escalating tensions, Trump ruled out immediate peace talks with Iran and said the U.S. will likely strike the Pickaxe Mountain nuclear facility.
The threat came as the U.S. military completed the 11th night of strikes on Iran and Tehran retaliated across the Gulf.
The U.S. military said it had targeted military operations centers, maritime assets, aircraft hangars, drone storage facilities and logistic infrastructure.
Iranian media reported explosions in Bushehr, home to the Iranian nuclear power plant, signaling a further escalation in hostilities.
On the trade front, Canadian Prime Minister Mark Caney said he was looking at “all options” after Trump imposed a 50 percent tariff on a wide range of goods imported from Canada.
On Tuesday evening, Trump announced a phased tariff plan on imported generic medicines.
Under the proposal, generic drugs imported into the U.S. will continue to face zero tariffs until August 2028, after which duties will increase to 100 percent and then 200 percent, to incentivize U.S. manufacturing.
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