Gold prices edged higher during Asian trading on Tuesday after a sharp pullback from near record highs in the previous session, as year-end profit-taking eased and investors reassessed ongoing geopolitical risks.
Spot gold rose about 0.7% to $4,362.30 an ounce, while U.S. gold futures for February delivery gained 0.8% to $4,378.75 an ounce in early trade. The metal had touched a record high of $4,549.71 last Friday before retreating sharply on Monday as traders locked in profits.
Other precious metals also saw heavy selling in the prior session. Silver and platinum, which had surged to multi-year or record highs alongside gold, dropped sharply as investors exited long positions.
Geopolitical tensions support bullion
Despite the recent pullback, the broader backdrop for gold remains supportive. Persistent geopolitical tensions, a weaker U.S. dollar, and expectations of further monetary easing by the Federal Reserve in 2026 have continued to underpin bullion demand.
Geopolitical developments stayed firmly in focus. Russian President Vladimir Putin said Moscow would revise its negotiating stance on Ukraine following alleged drone attacks on his residence, adding fresh uncertainty to already fragile U.S.-led peace efforts. These comments fueled concerns that the conflict could drag on, sustaining safe-haven demand for gold.
Tensions in the Middle East also supported bullion sentiment after U.S. President Donald Trump warned that the United States would strike Iran again if it attempted to rebuild its nuclear program. In Asia, risk appetite was further tested after China carried out extended live-fire military drills around Taiwan.
Gold has been one of the strongest-performing assets this year, benefiting from its role as a hedge against geopolitical instability and inflation, as well as from a softer dollar.
Fed minutes awaited for rate outlook
Expectations of additional Federal Reserve rate cuts in 2026 have also supported precious metals, as lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, silver, and platinum.
Still, Monday’s sharp decline suggested a period of consolidation after an extended rally. Thin year-end liquidity has amplified price swings, making markets more sensitive to profit-taking.
Investors are now awaiting the release of minutes from the Fed’s most recent policy meeting, which are expected to provide further insight into officials’ views on inflation, economic growth, and the future path of interest rates.
Silver, platinum and copper rebound
Other precious and industrial metals rebounded on Tuesday after steep losses from recent highs. Silver jumped nearly 3% to $74.32 an ounce, recovering from a drop after hitting a record $83.62 on Monday.
Platinum climbed 2.1% to $2,154.60 an ounce after plunging 14% in the previous session. Meanwhile, benchmark copper futures on the London Metal Exchange rose 2.4% to $12,501.20 a tonne, while U.S. copper futures gained 2.5% to $5.71 a pound.
