Gold prices paused just below record highs on Tuesday, as investors weighed heightened geopolitical tensions in Iran and growing concerns over U.S. political pressure on the Federal Reserve, while awaiting the release of closely watched U.S. inflation data later in the session.
Spot gold was little changed at $4,588.9 an ounce by 01:08 ET (06:08 GMT), after surging to an all-time high of $4,629.4 per ounce in the previous session. U.S. gold futures for March eased 0.4% to $4,596.81 an ounce.
Iran tensions and Fed autonomy underpin demand; CPI awaited
The latest rally in bullion has been fuelled by escalating unrest in Iran, where anti-government protests and warnings from the United States about possible intervention have raised fears of wider regional instability, boosting demand for safe-haven assets.
“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.
Buying interest was also supported by upheaval in U.S. politics and monetary policy. The Trump administration has issued grand jury subpoenas to the Federal Reserve and launched a criminal investigation into Chair Jerome Powell, focusing on his June testimony to Congress regarding a renovation project at the Fed’s headquarters. The move has intensified concerns about political interference and the independence of the central bank.
Powell, in a public statement, described the subpoenas — and the prospect of criminal charges — as “pretexts” aimed at pressuring the Fed to change its interest-rate stance. He reiterated that monetary policy decisions would continue to be guided by economic data rather than political considerations.
Markets are now turning their attention to the U.S. Consumer Price Index (CPI) report due later on Tuesday, which is expected to provide fresh clues on whether the Federal Reserve may move towards interest rate cuts in 2026.
Broader metals complex remains elevated
Silver also touched record levels in the previous session. On Tuesday, spot silver was largely flat at $84.94 an ounce, after reaching a peak of $86.22 an ounce on Monday.
Platinum prices retreated 1.4% to $2,310.09 an ounce, following gains of more than 3% in the prior session. Copper prices softened, with benchmark London Metal Exchange futures slipping 0.6% to $13,089.20 a tonne, while U.S. copper futures fell 0.3% to $5.99 a pound.
Despite the pullback, both copper contracts remain close to the record highs reached last week, after strong gains at the start of the week.