Gold, silver rise on renewed U.S.-Iran tensions
Gold prices rose in European trading on Tuesday after falling sharply from near record highs in the previous session. It seems that year-end profit taking has eased while Donald Trump warned of potential new strikes against Iran, News.Az reports, citing Reuters.
Spot gold was last up 1.2% at $4,384.87 an ounce by 06:45 ET (11:45 GMT). U.S. Gold Futures for February delivery rose 1.3% to $4,400.35/oz.
Gold touched a record high of $4,549.71/oz on Friday last week but sharply retreated from those peaks on Monday amid profit-taking.
Other precious metals also came under pressure. Silver and platinum, which had surged to multi-year or record peaks alongside gold, slumped sharply on Monday as traders exited long positions.
Gold supported by geopolitical tensions
The pullback came despite a broadly supportive backdrop for bullion, including persistent geopolitical risks, a weaker U.S. dollar, and expectations of further monetary easing by the Federal Reserve in 2026.
Geopolitical developments remained firmly in focus. Russian President Vladimir Putin said Moscow would revise its negotiating position on Ukraine after what he described as alleged drone attacks on his residence, adding fresh uncertainty to already faltering U.S.-led peace efforts.
The comments raised concerns that the conflict could persist, sustaining safe-haven demand for gold and other precious metals.
Tensions in the Middle East also underpinned bullion sentiment after U.S. President Donald Trump said on Monday that the U.S. would strike Iran again if it attempted to rebuild its nuclear program.
“I hope they are not trying to build up again, because if they are, we’re going to have no choice but very quickly to eradicate that build up,” Trump said.
In Asia, risk sentiment was further tested after China launched around 10 hours of live-firing military exercises around Taiwan on Tuesday.
Gold has been one of the strongest-performing assets this year, buoyed by its traditional role as a hedge against geopolitical turmoil and inflation, as well as by a weaker dollar.
Fed minutes awaited for rate outlook
Expectations that the Federal Reserve will deliver additional interest rate cuts in 2026 have also supported the metal, as lower rates reduce the opportunity cost of holding non-yielding assets such as gold, silver, and platinum.
Despite these supportive factors, the sharp decline on Monday reflected healthy consolidation after an extended rally. Thin liquidity toward the end of the year has also contributed to sharper price swings, amplifying moves driven by profit-taking across the precious metals complex.
Investors are now awaiting the release of minutes from the Federal Reserve’s latest policy meeting later on Tuesday.
The minutes are expected to offer further insight into policymakers’ views on inflation, economic growth and the outlook for interest rates, and could influence expectations around the pace and timing of future easing.
Silver rises after slumping from peaks
Other precious and industrial metals also rose on Tuesday after sharp declines from recent highs.
Spot silver prices jumped nearly 3.8% to $74.85 per ounce, after falling from a record high of $83.62/oz on Monday.
Platinum prices rose 3.2% to $2,181.75/oz after slumping 14% in the previous session.
U.S. Copper Futures rose 2.4% to $5.70 a pound.
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