Gold prices advanced during Asian trading on Tuesday, extending their recent rally after setting multiple record highs. The gains were driven by mounting concerns over trade policies under Donald Trump and rising geopolitical tensions across several regions.
Markets also remained cautious ahead of this week’s policy meeting by the Federal Reserve. While the central bank is widely expected to keep interest rates unchanged on Wednesday, the anticipation helped sustain demand for safe-haven assets.
Spot gold climbed 1.1% to $5,062.97 an ounce by 23:43 ET (04:43 GMT). Meanwhile, April gold futures dipped 0.5% to $5,098.26 an ounce. Spot prices had reached an all-time high of $5,111.11 an ounce in the previous session.
Other precious metals also posted strong gains. Spot silver surged nearly 4% to $107.94 an ounce after briefly touching a record above $111. Platinum prices jumped 2.7% to $2,656.27 an ounce.
Global uncertainty fuels safe-haven demand
Demand for gold and other precious metals has risen sharply in recent weeks as investors react to escalating political and economic uncertainty. Trump’s renewed push for trade tariffs against key U.S. allies — including threats of an effective trade embargo on Canada — has unsettled global markets.
The U.S. president also opposed closer trade ties between Canada and China, warning of potential tariffs as high as 100% on Ottawa. On Monday, Trump further escalated tensions by announcing a 25% tariff increase on South Korean goods, accusing Seoul of delaying implementation of a recent trade agreement.
Although Trump later softened his stance on Greenland and reduced tariff threats toward Europe, investor nerves remain frayed amid the risk of further policy shifts.
Geopolitical stress has also intensified in the Middle East, particularly around Iran, afterising after U.S. naval deployments to the region. These developments have added to broader market unease.
“With geopolitical, political, economic, and financial risks at their highest levels in decades, gold’s appeal has expanded across investor groups and regions,” analysts at ANZ said in a note, highlighting growing support for gold investment in countries such as China and India.
OCBC raises long-term gold outlook
Singapore-based lender OCBC revised its gold price outlook higher on Tuesday, lifting its 2026 year-end forecast to $5,600 an ounce from a previous estimate of $4,800.
The bank cited a persistently risk-averse global environment, marked by geopolitical tensions, economic uncertainty, and rising investor demand for safe-haven assets.
OCBC analysts noted that gold is increasingly supported by a broad backdrop of uncertainty rather than isolated risk events, encouraging diversification away from sovereign assets.
Still, the bank cautioned that short-term pullbacks remain possible, as the recent sharp rally could prompt bouts of profit-taking in the near term.
