Gold prices rose on Tuesday, hovering just short of the $5,100 per ounce mark it breached for the first time in the previous session, as uncertainty surrounding U.S. President Donald Trump’s policy decisions prompted investors to seek the safety of bullion.
Spot gold rose 1.2% to $5,073.52 an ounce at 1155 GMT. It hit an all-time high of $5,110.50 on Monday.
US gold futures for February delivery fell 0.2% to $5,071.20 per ounce.
OANDA Market Pulse analyst Zain Vawda said demand for safe havens is unlikely to be subdued anytime soon “due to the constant back-and-forth between President Trump and the U.S. administration (on tariffs) and growing concerns about military operations in Iran.”
Gold is up 18% so far in 2026, building on gains from last year due to factors such as sustained safe-haven demand amid geopolitical and economic uncertainty, expectations for U.S. interest rate cuts, and solid central bank buying. In trade news, President Trump said Monday that he would increase tariffs on cars and other products imported from South Korea. Meanwhile, a U.S. official said Monday that the United States is “ready to respond” if Iran wishes to communicate with Washington, following President Trump’s renewed warning to Tehran.
Deutsche Bank and Société Générale expect gold prices to reach $6,000 an ounce in 2026, highlighting room for further upside.
Markets are now focused on the Federal Reserve’s policy meeting starting Tuesday, which is expected to keep interest rates on hold, while investors also await news on Chairman Jerome Powell’s replacement.
Spot silver rose 7.4% to $111.59 an ounce after hitting a record high of $117.69 on Monday. It has soared more than 50% so far this year.
“We expect prices to ease in the coming months as supply strains ease and industrial demand for silver begins to peak as mainland China’s economy slows,” BMI, a unit of Fitch Solutions, said in a note.
Spot platinum fell 3.1% to $2,673.50 an ounce after hitting a record high of $2,918.80 in the previous session. Palladium added 2.2% to $2,025.60.
(Reporting by Pablo Sinha in Bengaluru; Editing by Sonia Cheema)
