Gold price rose on Wednesday after Asian markets opened. Strong demand from traders and investors supported the market and pushed prices higher across early trading sessions.
The price of one ounce of gold rose by 0.5% during the day. As a result, it moved above the key $5,180 level and surpassed $5,185. This upward movement followed a decline on Tuesday, when gold prices dropped by 1%. However, the market quickly regained strength as buyers returned.
Investors once again turned to gold as a safe-haven asset. When global uncertainty rises, many traders prefer gold because it helps protect value during volatile periods. Therefore, renewed buying interest helped prices recover from recent losses and regain positive momentum.
Kyle Rodda, an analyst at Capital.com, said that the reopening of Chinese markets after the Lunar New Year holiday played a major role in supporting prices. He explained that stronger activity from Chinese investors boosted overall demand. China remains one of the largest consumers of gold in the world, and its market trends often influence global prices.
At the same time, uncertainty surrounding U.S. economic policy added further support. The United States Supreme Court recently struck down earlier tariff measures. In response, the U.S. administration announced plans to introduce new tariffs of up to 15%. Such developments increased market caution and encouraged investors to seek safer assets like gold.
In addition, two officials from the Federal Reserve stated that they do not plan to adjust the current monetary policy in the near term. Stable interest rate expectations often influence gold movements because higher rates can reduce gold’s appeal.
Kyle Rodda added that gold prices may continue to rise in the near term. He said that ongoing trade tensions and uncertainty over government policies are keeping investors cautious. As a result, many traders are likely to increase their holdings in safe-haven assets like gold. If these concerns persist, demand for gold could remain strong in the coming weeks and support further price gains.
