Key Moments
- Spot gold traded flat at $4,588.9 per ounce after touching a record high of $4,629.4 per ounce in the previous session.
- Escalating unrest in Iran and unprecedented political pressure on the Federal Reserve continued to underpin safe-haven demand.
- Investors awaited the U.S. Consumer Price Index report, seen as a key input for expectations on potential Fed rate cuts in 2026.
Gold Prices Stabilize Just Below Record Highs
Gold prices were little changed on Tuesday, consolidating just under their recent all-time highs as investors weighed persistent geopolitical tensions in Iran and an intensifying confrontation between the U.S. administration and the Federal Reserve. Market participants were also positioned ahead of a closely watched U.S. inflation reading later in the day.
Spot gold last traded flat at $4,588.9 an ounce by 01:08 ET (06:08 GMT), pausing after a surge to a record $4,629.4 per ounce in the prior session. U.S. Gold Futures for March delivery edged down 0.4% to $4,596.81 per ounce.
Geopolitical Turmoil and Fed Autonomy in the Spotlight
The latest leg of the gold rally followed mounting unrest in Iran, where anti-government demonstrations have prompted warnings from the U.S. about potential intervention. The prospect of broader regional instability has continued to channel flows into bullion as a perceived safe-haven asset.
“Protests in Iran keep geopolitical tensions elevated, while President Trump has reiterated threats to take Greenland, bringing further upside to precious metals,” ING analysts said in a note.
Domestic political developments in the U.S. also fed into the move. The Trump administration issued grand jury subpoenas to the Federal Reserve and launched a criminal probe into Chair Jerome Powell. The investigation is focused on his June congressional testimony regarding a renovation project at the Fed’s headquarters, raising alarms about possible political encroachment on the central bank’s independence.
Powell, in a public statement, described the subpoenas — and threats of criminal indictment — as “pretexts” for exerting pressure on the Fed to alter its interest-rate policy, and reaffirmed the central bank’s commitment to setting policy based on economic conditions rather than political influence.
Inflation Data Awaited as Markets Gauge 2026 Rate-Cut Prospects
The U.S. Consumer Price Index report was due later on Tuesday. Traders were watching the data for indications on whether the Federal Reserve is likely to consider cutting interest rates in 2026, with the outcome seen as a potential catalyst for further moves in precious metals.
Broader Metals Market: Silver, Platinum, and Copper
Other major metals also remained in focus following strong gains.
| Metal | Price | Move on Day | Recent Milestone / Context |
|---|---|---|---|
| Silver | $84.94/oz | Largely unchanged | Hit a record high of $86.22/oz on Monday |
| Platinum | $2,310.09/oz | -1.4% | Retreated after gaining more than 3% in the previous session |
| Benchmark Copper Futures (LME) | $13,089.20/ton | -0.6% | Still near all-time highs after sharp Monday gains |
| U.S. Copper Futures | $5.99/lb | -0.3% | Also remained close to record levels following Monday’s rally |
Silver prices, which had also notched record highs in the previous session, were broadly steady at $84.94 per ounce on Tuesday, after reaching an all-time high of $86.22 per ounce on Monday. Platinum pulled back, falling 1.4% to $2,310.09 per ounce, following gains of more than 3% in the prior session.
In base metals, Benchmark Copper Futures on the London Metal Exchange slipped 0.6% to $13,089.20 a ton, while U.S. Copper Futures eased 0.3% to $5.99 a pound. Both contracts had logged strong advances on Monday and continued to trade near the record highs set last week.
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