Gold prices climbed more than 1% to around $5,070 per ounce on Tuesday, remaining close to record territory after touching an all-time high above $5,100 in the previous session. The move reflects heightened safe-haven demand as investors respond to escalating trade and geopolitical risks.
Market sentiment was rattled after US President Donald Trump warned of potential tariff hikes on autos, lumber, and pharmaceutical imports from South Korea. Under the proposal, existing duties on certain goods could rise from 15% to 25%, citing limited progress on a previously announced trade agreement. These developments have reinforced demand for defensive assets.
Federal Reserve Outlook in Focus
Investor attention is now turning to the US Federal Reserve’s two-day policy meeting, which begins Tuesday. While interest rates are widely expected to remain unchanged, markets are closely watching Chair Jerome Powell’s comments, particularly amid increasing political pressure to cut rates. Gold has already gained nearly 17% so far this year, supported by central bank buying, steady ETF inflows, and concerns over fiscal stability.
Silver Extends Record-Breaking Surge
Silver prices surged more than 6% to above $110 per ounce, extending a powerful rally driven by similar forces. Rising geopolitical risks, fears over monetary policy independence, and investor retreat from bonds and currencies have strengthened the appeal of real assets.
Both metals continue to benefit from the so-called debasement trade, as investors seek protection against currency weakness and heavy government spending in major economies.
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