Gold prices hovered around $5,170 per ounce, trimming earlier gains as markets balanced escalating US trade protectionism and rising geopolitical tensions in the Middle East against a firm US dollar. Bullion drew support after the administration invoked Section 122 to impose a 10% global tariff, following a February 20 Supreme Court ruling that invalidated prior emergency duties. This policy shift rekindled inflation concerns and bolstered safe-haven demand, particularly as the White House hinted the tariff rate could be raised to 15%.
Upside for gold remained constrained, however, as core inflation pressures persisted: January PCE inflation held at a sticky 3%, and the Federal Reserve signaled no urgency to begin cutting interest rates. On the supply side, sustained central bank buying continued to provide a structural backstop, with net monthly purchases averaging 60 tonnes.
Safe-haven inflows were further supported by stalled US–Iran nuclear negotiations in Geneva, yet the picture was muddied by mixed macro signals, including a 212,000 increase in weekly jobless claims in February 2026.
