Gold (XAUUSD) is trading higher on Wednesday, supported by uncertainty over U.S. tariff policies and continued tensions between the U.S. and Iran. The precious metal is viewed as a safe-haven asset and tends to benefit during periods of uncertainty.
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New trading tool for QQQ bulls“Ongoing tariff uncertainties and persistent U.S.–Iran tensions continue to support safe-haven demand, keeping prices elevated despite intermittent profit booking,” said LKP Securities VP of Research Jateen Trivedi.
Wall Street Stays Bullish on Gold
Elsewhere, two Wall Street firms reaffirmed their bullish views on gold. JPMorgan reiterated its year-end price target of $6,300, driven by strong central bank demand, geopolitical risks, and lower rates. Lower interest rates are generally viewed as a positive for gold, as the opportunity cost of holding it relative to interest-bearing assets goes down.
Furthermore, Bank of America expects gold to reach $6,000 within 12 months, with risks to the Fed’s independence benefiting the precious metal.