Gold prices edged higher on Tuesday after a fresh run of record highs, as investor demand was supported by concerns over U.S. President Donald Trump’s trade policies and rising global geopolitical risks.
By 11:31 ET (16:31 GMT), spot gold climbed 1.7% to $5,093.04 per ounce, while April gold futures were up 0.1% at $5,127.69 an ounce. The precious metal reached a record peak of $5,111.40/oz on Monday, extending a powerful rally driven by safe-haven buying throughout January.
Gold has surged about 67.5% so far in 2025, marking its strongest annual performance since 1979. Silver has also posted sharp gains, though analysts note important differences between the two metals. Deutsche Bank strategist Jim Reid said silver prices, despite rising more than 260% since early 2025, remain below their inflation-adjusted peak from 1980, unlike gold.
Reid added that while precious metals can play a role in diversified portfolios, long-term returns may struggle to match equities from current levels, particularly given elevated prices.
Gold demand boosted by global uncertainty
Safe-haven demand intensified after Trump threatened new trade tariffs against several U.S. allies, including a potential trade embargo on Canada. The president also raised concerns over Canada’s trade ties with China and warned of 100% tariffs on Ottawa. In addition, Trump announced plans to lift tariffs on South Korean goods to 25%, citing delays in implementing a recent trade agreement.
Although Trump softened his stance on Greenland and some tariff threats toward Europe, markets remained cautious about further policy moves. Tensions in the Middle East also weighed on sentiment, as U.S. naval deployments in the region added to geopolitical uncertainty.
ANZ analysts said that with political, economic, and financial risks at their highest levels in decades, gold’s appeal has broadened across regions and investor groups. Countries such as China and India, they noted, are actively encouraging gold investment.
OCBC raises gold outlook for 2026
Singapore-based OCBC raised its gold price forecast for 2026, now expecting bullion to end the year near $5,600 per ounce, up from an earlier estimate of $4,800. The bank pointed to persistent geopolitical tensions, economic uncertainty, and rising demand for safe-haven assets.
OCBC analysts said gold is being supported less by isolated risk events and more by a prolonged backdrop of uncertainty that favors diversification into non-sovereign assets. However, they cautioned that short-term pullbacks remain possible as investors take profits after the recent rally.
Silver surges near record highs
Spot silver jumped 4.3% to $108.36 per ounce after briefly climbing above $113/oz, near record levels. Analysts at ING said the rally reflects both silver’s role as a precious metal and tightening physical market conditions, including low inventories and elevated lease rates.
Silver prices are up roughly 60% year to date, following a near 150% surge in 2025. ING warned that high prices could curb industrial demand and keep volatility elevated. The gold-to-silver ratio has fallen below 50, its lowest level since 2011, highlighting silver’s recent outperformance.
