Gold prices rebounded in European trading on Tuesday after retreating sharply from near-record levels in the previous session. The recovery came as year-end profit taking began to ease, while renewed geopolitical tensions added fresh support to safe-haven demand.
Spot gold rose 1.2% to $4,384.87 an ounce by mid-morning European trade. U.S. gold futures for February delivery climbed 1.3% to $4,400.35 per ounce.
The precious metal had reached an all-time high of $4,549.71 per ounce late last week before pulling back on Monday, as traders locked in gains following the strong rally.
Silver and platinum also faced heavy selling pressure in the prior session. Both metals had surged to multi-year or record highs alongside gold but dropped sharply as investors unwound long positions.
Geopolitical risks support gold prices
Despite Monday’s correction, the broader backdrop for gold remains supportive. Ongoing geopolitical uncertainty, a weaker U.S. dollar, and expectations of additional monetary easing by the Federal Reserve in 2026 continue to underpin bullion prices.
Geopolitical developments stayed firmly in focus after Russian President Vladimir Putin said Moscow would reconsider its negotiating stance on Ukraine following alleged drone attacks on his residence. The comments added further uncertainty to already fragile U.S.-led peace efforts, raising concerns that the conflict could persist.
Tensions in the Middle East also supported gold after U.S. President Donald Trump warned that the United States could carry out additional strikes against Iran if Tehran attempted to rebuild its nuclear program. His remarks reinforced safe-haven demand across precious metals markets.
Risk sentiment was further tested in Asia after China conducted extended live-fire military drills around Taiwan, adding to global uncertainty.
Gold has been among the strongest-performing assets this year, supported by its traditional role as a hedge against geopolitical instability and inflation, as well as by sustained weakness in the U.S. dollar.
Investors await Fed minutes
Expectations of further U.S. interest rate cuts in 2026 have also boosted precious metals, as lower rates reduce the opportunity cost of holding non-yielding assets such as gold, silver, and platinum.
Market participants noted that Monday’s pullback reflected a period of consolidation after an extended rally. Thin liquidity toward year-end has amplified price swings, making the metals complex more sensitive to profit-taking.
Attention now turns to the release of minutes from the Federal Reserve’s latest policy meeting, due later on Tuesday. The minutes are expected to provide insight into policymakers’ views on inflation, economic growth, and the future path of interest rates.
Silver and platinum rebound
Other metals also staged a recovery on Tuesday following steep declines from recent highs.
Spot silver surged nearly 3.8% to $74.85 per ounce after falling from a record high of $83.62 in the previous session. Platinum rose 3.2% to $2,181.75 per ounce after plunging 14% on Monday. Meanwhile, U.S. copper futures advanced 2.4% to $5.70 a pound.
