Gold prices maintained their position above $5,000 per ounce on Tuesday, climbing as much as 1.8% in their seventh straight session of gains. The precious metal traded at $5,083.27 per ounce in Singapore afternoon trading as investors continued seeking alternatives to traditional currencies and government bonds.
The rally comes as the US dollar weakened on speculation that America may assist Japan in supporting the yen. This currency shift made gold cheaper for international buyers. President Trump’s latest tariff announcements added fuel to the safe haven trade.
Trump stated Monday evening that he would raise tariffs on South Korean goods to 25%. The president claimed Seoul was delaying implementation of a recent trade deal. He also threatened 100% tariffs on Canada if Ottawa pursues a trade agreement with China.
Gold has more than doubled over the past two years. The metal gained 17% in 2026 following its strongest annual performance since 1979. Analysts attribute the surge to what traders call the debasement trade, where investors move away from currencies and Treasury bonds.
Silver outperformed gold with a 9% jump to $112.03 per ounce. The white metal has surged 57% since January 1, 2026. Monday saw silver’s biggest intraday gain since the 2008 financial crisis.
James Emmett, CEO of MKS PAMP SA, described the silver market as experiencing unprecedented demand. “It’s not a market that traditionally has that level of speculation, and you are definitely seeing more price action driven by short-term players,” he told Bloomberg.
Options market data shows traders expect further upside. Implied volatility on Comex gold futures reached levels not seen since March 2020 during the pandemic peak. The world’s largest gold ETF, SPDR Gold Shares, also recorded elevated volatility readings.
OCBC bank revised its 2026 gold price target upward on Tuesday. The Singapore-based institution now expects gold to finish the year near $5,600 per ounce, up from its previous $4,800 forecast. The bank pointed to an increasingly risk-averse investment environment.
“Gold is being supported less by any single event risk and more by a sustained backdrop of uncertainty that encourages diversification into non-sovereign assets,” OCBC analysts wrote. They cautioned that some profit-taking could trigger near-term price pullbacks.
Vincent Mortier, chief investment officer at Amundi SA, Europe’s largest money manager, said American isolation from global partners is pushing investors toward gold. “Gold in the long term is a very good protection against debasement and a good way to maintain some purchasing power,” he said.
Fawad Razaqzada from City Index Ltd noted changing trader psychology. “Traders are buying pullbacks rather than fading rallies,” he said. This behavior suggests continued price strength in the near term.
The Federal Reserve meets Wednesday and is widely expected to pause its rate-cutting cycle. Markets await Trump’s selection for the next Fed chair after he said candidate interviews have concluded. Platinum gained 5.3% while palladium rose 2.9% on Tuesday.
The post Gold Holds Above $5,000 as Dollar Weakness and Tariff Fears Drive Rally appeared first on Blockonomi.
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