FUNDAMENTALS
Spot gold gained 1% to $5,138.46 per ounce as of 0052 GMT. On Tuesday, bullion fell to its lowest since February 20, weighed by a firmer dollar and dimming rate-cut prospects as inflation concerns intensified amid fears of a potentially prolonged Middle East conflict.
U.S. gold futures for April delivery added 0.5% to $5,147.10.
The U.S. dollar strengthened, making dollar-denominated assets such as bullion more expensive for other currency holders.
Four days into the war, U.S. President Donald Trump told reporters that the U.S. military had struck numerous Iranian naval and air targets, saying that “just about everything has been knocked out.” Global oil and gas prices surged as the U.S.-Israeli war on Iran halted energy exports from the Middle East, with Tehran attacking ships and energy facilities, closing navigation in the Gulf and forcing production stoppages from Qatar to Iraq. Global stock markets slid as the disruption of Middle East energy supplies exacerbated investor concerns about inflation. Spot gold has risen 19% year-to-date, driven by global turmoil, after surging 64% in 2025. Meanwhile, silver rose more than 16% so far this year.
Spot silver advanced 1.4% to $83.27 per ounce on Wednesday, after falling more than 8% in the last session.
“ETP outflows are keeping silver vulnerable to volatility in the near-term and are key to track, but an undersupplied market suggests a recovery in the coming months,” Standard Chartered said in a note.
Spot platinum added 1% to $2,104.25 per ounce, while palladium gained 0.4% to $1,653.
DATA/EVENTS (GMT)
1445 US S&P Global Comp PMI Final Feb
1445 US S&P Global Comp, Svcs PMI Final Feb
1500 US ISM N-Mfg PMI Feb.
