Gold prices climbed above $5,000 per ounce on Tuesday, extending a seven-day winning streak. The precious metal jumped as much as 1.8% as investors continued moving away from currencies and government bonds.
President Donald Trump announced plans to raise tariffs on South Korean goods to 25%. The president claimed Seoul was delaying a recent trade deal. This follows his weekend threat to impose 100% tariffs on Canada if the country makes a trade agreement with China.
The US dollar weakened on Monday, with speculation mounting that the US may help Japan support the yen. This currency movement made precious metals cheaper for most international buyers. Gold traded at $5,083.27 per ounce as of 4:07 p.m. in Singapore.
The metal has more than doubled in price over the past two years. It posted a 17% gain so far in 2026 after recording its best annual performance since 1979. Investors are fleeing to gold as a hedge against currency debasement and government fiscal spending.
Silver prices surged over 9% to reach $112.03 per ounce on Tuesday. The white metal has gained 57% since the beginning of the year. On Monday, silver posted its largest intraday jump since the 2008 global financial crisis.
James Emmett, CEO of refiner and trader MKS PAMP SA, noted unprecedented silver 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 said.
Vincent Mortier, chief investment officer at Amundi SA, said America’s isolation from other nations 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 stated in a Bloomberg Television interview.
Options traders are preparing for more upside in the market. Implied volatility of Comex futures reached the highest level since March 2020 during the peak of the Covid-19 pandemic. Volatility on State Street’s SPDR Gold Shares, the world’s largest bullion-backed ETF, also broke out higher.
Fawad Razaqzada, an analyst at City Index Ltd, observed shifting trader behavior. “Traders are buying pullbacks rather than fading rallies,” he said. “As long as that mindset persists, it is difficult to argue against higher prices in the near term.”
Trump’s recent actions have unsettled markets beyond trade policy. The administration has threatened to annex Greenland and discussed potential military intervention in Venezuela. Trump has also renewed criticism of the Federal Reserve’s independence.
Heightened geopolitical tensions in Iran and the Middle East added to market concerns. US ships arrived in the region, keeping investors on edge about potential conflicts.
ANZ analysts wrote that investment demand for gold has broadened across investor types and regions. “With geopolitical, political, economic and financial risks at their highest in decades,” countries like China and India are actively promoting gold investment, they said.
The Federal Reserve is widely expected to keep interest rates unchanged at its Wednesday meeting. A steadier jobs market has restored some consensus after months of division. Investors are awaiting Trump’s pick for the next Fed chair after he said he finished interviewing candidates.
Singaporean bank OCBC raised its gold price target for 2026 on Tuesday. The bank now expects bullion to end the year around $5,600 per ounce, up from prior forecasts of $4,800. OCBC cited an increasingly risk-averse environment with ongoing geopolitical tensions and economic uncertainty.
“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. The bank noted that some near-term pullback was possible as recent gains could trigger profit-taking.
Platinum climbed 5.3% and palladium rose 2.9% on Tuesday. The Bloomberg Dollar Spot Index edged up 0.1% after falling 0.4% in the previous session.
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