Gold prices held steady just below record highs on Tuesday, as investors assessed escalating geopolitical tensions in Iran and mounting political pressure on the Federal Reserve, while waiting for crucial U.S. inflation data later in the session.
Spot gold was little changed at $4,588.9 per ounce by 01:08 ET (06:08 GMT), after surging to an all-time high of $4,629.4 per ounce in the previous session. Meanwhile, U.S. gold futures for March delivery edged 0.4% lower to $4,596.81 per ounce.
Iran tensions and Fed independence concerns support gold
The recent rally in bullion was fueled by intensifying unrest in Iran, where widespread anti-government protests have prompted warnings from Washington of potential intervention. These developments have heightened fears of broader regional instability, reinforcing demand for safe-haven assets such as gold.
Analysts at ING noted that persistent protests in Iran continue to keep geopolitical risks elevated. They also pointed to renewed rhetoric from U.S. President Donald Trump, including repeated threats regarding Greenland, as an additional factor supporting upside momentum in precious metals.
Investor demand was further boosted by growing turmoil surrounding U.S. monetary policy. The Trump administration issued grand jury subpoenas to the Federal Reserve and launched a criminal investigation into Fed Chair Jerome Powell, linked to his June congressional testimony on renovation work at the central bank’s headquarters. The move raised alarm over potential political interference in the Fed’s independence.
Powell responded publicly, describing the subpoenas and threats of criminal charges as attempts to pressure the central bank into changing its interest-rate stance. He reaffirmed that policy decisions would remain guided strictly by economic data and the Fed’s mandate, not political considerations.
Markets are now focused on the upcoming release of the U.S. Consumer Price Index (CPI), due later Tuesday, which could offer fresh insight into inflation trends and shape expectations around potential Federal Reserve rate cuts in 2026.
Broader metals market remains firm
Other precious metals also remained near record territory. Silver prices were largely unchanged at $84.94 per ounce after hitting an all-time high of $86.22 per ounce in the previous session.
Platinum slipped 1.4% to $2,310.09 per ounce, following gains of more than 3% a day earlier.
In industrial metals, benchmark copper futures on the London Metal Exchange fell 0.6% to $13,089.20 per metric ton, while U.S. copper futures declined 0.3% to $5.99 per pound. Despite the pullback, both contracts remained close to the all-time highs reached last week after strong gains on Monday.
