Gold prices moved little on Wednesday after pulling back from recent record highs, although safe haven demand remained high in the face of uncertainty over U.S. trade tariffs and slowing growth. In the UAE, gold rates experienced a decrease, as 24-carat gold fell by AED2.75, bringing the price to AED351.25. Likewise, 22-carat, 21-carat, and 18-carat gold saw reductions of AED2.25, now priced at AED327, AED315.75, and AED268.75, respectively.
Gold was affected by some profit-taking after racing to record highs over the past month, as haven demand was boosted by Trump’s tariff threats and growing fears of a cooling U.S. economy. A softer dollar also benefited metal prices, as weak U.S. economic data spurred expectations for more interest rate cuts by the Federal Reserve.
Spot gold steadied at $2,916.06 an ounce, while gold futures expiring in April rose 0.4 percent to $2,929.74 an ounce by 00:21 ET (05:21 GMT). Spot gold prices hit a record high of $2,956.37 an ounce earlier this month, with markets now focusing on $3,000 an ounce as the next major milestone.
U.S. consumer confidence
Vijay Valecha, chief investment officer, Century Financial, told Economy Middle East that despite gold’s sharp decline, its movements continue to stay largely within a range.
“The U.S. consumer confidence fell the most since August 2021, declining to 98.3 in February versus 105.3 prior, according to the Conference Board. Meanwhile, Richmond Fed President Thomas Barkin emphasised on a wait-and-see approach on interest rates until inflation clearly moves toward the 2 percent target,” noted Valecha.
“The U.S. New Home Sales for January will be released later on Wednesday, along with speeches from Fed officials, including Raphael Bostic and Thomas Barkin, which are expected to give signals about the Fed’s rate cut plans, dictating the movement of gold.”
According to Valecha, it is noted that gold is trading below the 9 SMA on the daily chart. The yellow metal reportedly has immediate support at the psychological level of $2,900, with strong support observed at the 61.8 percent Fibonacci confluence level of $2,891.
Copper rises as Chile disruptions offset Trump tariff threat
Copper prices, on the other hand, rose sharply as a significant power outage in Chile—the world’s top copper producer—threatened to disrupt supplies. This development largely overshadowed U.S. President Donald Trump’s threats to impose tariffs on imports of the red metal.
Benchmark copper futures on the London Metal Exchange increased by 0.8 percent to $9,486.05 a ton, while March copper futures rose 0.9 percent to $4.7408 a pound. The red metal was boosted by expectations of supply disruptions after Chile experienced a widespread power outage, which also impacted the country’s massive copper mines.
Santiago declared a state of emergency, with the blackout attributed to a transmission failure in Chile’s north. However, large areas of Chile’s mining-rich north remained without power, causing major mines, including Escondida, to halt operations. A prolonged outage could severely impact global copper supplies.
This situation helped markets largely overlook Trump’s tariff threat. The U.S. President stated that he was considering tariffs on copper imports, following the imposition of 25 percent duties on steel and aluminum imports earlier this month. Trump indicated that these tariffs would aim to bolster local copper production in the U.S. and also curtail China’s market dominance of the red metal. If implemented, Trump’s tariffs could potentially hurt demand for copper, given that the U.S. is a major consumer of the metal.
Metals benefit from softer dollar amid U.S. economic jitters
Broader metal prices rose on Wednesday, benefiting from a softer dollar as weak economic data weighed on the greenback. The dollar index slid to a near three-month low after softer-than-expected consumer confidence data for February, which heightened concerns over cooling private consumption—a significant driver of the economy.
Platinum futures fell 0.2 percent to $976.30 an ounce, cooling from some overnight gains, while silver futures surged 1 percent to $32.158 an ounce. The focus is now on the upcoming U.S. gross domestic product data for the fourth quarter, as well as the PCE price index data, which is the Fed’s preferred inflation gauge. Both reports are due later in the week.
Global rates hit new record high
Gold prices surged to an unprecedented level on Tuesday, fueled by safe-haven demand amid anxieties surrounding U.S. President Donald Trump’s tariff plans, with additional support stemming from inflows into the world’s leading gold-backed exchange-traded fund. Spot gold increased by 0.4 percent to $2,947.48 per ounce as of 01:55 p.m. ET (18:54 GMT), hitting a peak of $2,956.15 earlier in the session—marking its eleventh record high in 2025. U.S. gold futures settled 0.3 percent higher at $2,963.20.
In the UAE, gold rates saw a decline, with 24-carat gold falling by AED0.25 to AED354.00. Similarly, 22-carat gold dropped AED0.50 to AED329.25. Additionally, 21-carat gold decreased by AED0.25, bringing it to AED315.75, while 18-carat gold remained steady at AED271.
Spot gold experienced a slight increase of 0.1 percent, reaching $2,939.15 an ounce as of 04:44 GMT, after achieving an all-time high of $2,954.69 just last Thursday. Meanwhile, U.S. gold futures remained relatively flat at $2,953.
The U.S. dollar index reached its lowest level since December 10 earlier in the session, making bullion more accessible for buyers using other currencies. U.S. President Donald Trump warned of imminent new tariffs last week, which are broadly perceived as inflationary and capable of triggering trade wars, thereby boosting demand for safe-haven assets like gold.
