(RTTNews) – Gold prices rose for the fourth straight session on Wednesday and hit a two-week high as investors reacted to rising tensions in the Middle East and ahead of next week’s Federal Reserve meeting.
Tariff concerns also resurfaced as US President Donald Trump unveiled a phased-in tariff plan for imported generic drugs after imposing 50 per cent tariffs on a wide range of goods imported from Canada.
Spot gold jumped 0.9 percent to $4,114.81 an ounce as central bank purchases of gold hit a historic high amid rising geopolitical risks and inflation concerns. US gold futures were up more than 1 percent at $4,118.60 despite pressure from aggressive Fed pricing.
The US dollar index hit a one-week high on rising US-Iran tensions and concerns over new US trade tariffs.
Amid rising tensions, Trump ruled out immediate peace talks with Iran and said the US would possibly attack the Pickaxe Mountain nuclear facility.
The threat came as US forces completed their 11th night of attacks on Iran and Tehran retaliated across the Gulf.
The US military said it had targeted military operations centers, maritime assets, aircraft hangars, drone storage facilities and logistics infrastructure.
Iranian media reported explosions in Bushehr, home to an Iranian nuclear power plant, indicating a further escalation in hostilities.
On the trade front, Canadian Prime Minister Mark Kenney said he was considering “all options” after Trump imposed 50 per cent tariffs on a wide range of goods imported from Canada.
On Tuesday evening, Trump announced a phased-in tariff plan on imported generic drugs.
Under the proposal, generic drugs imported into the US would continue to face zero tariffs until August 2028, after which the duty would rise to 100 percent and then 200 percent to incentivize American manufacturing.
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