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Gold prices rose modestly in Asian trading on Tuesday, recovering slightly after a steep drop from near record highs in the previous session, as year-end profit-taking eased and investors reassessed a range of geopolitical risks.
By 00:12 ET (06:12 GMT), spot gold was up 0.7% at $4,362.30 per ounce, while U.S. gold futures for February delivery rose 0.8% to $4,378.75 per ounce.
The metal hit an all-time high of $4,549.71 per ounce on Friday but retreated sharply on Monday as traders locked in gains. The pullback also spilled over into other precious metals, with silver and platinum — which had recently surged to multi-year or record peaks alongside gold — sliding as investors unwound long positions.
Geopolitical tensions continue to underpin gold
The retreat came despite a broadly supportive environment for bullion, including persistent geopolitical uncertainty, a weaker U.S. dollar, and expectations of further monetary easing by the Federal Reserve in 2026.
Geopolitics remained in sharp focus after Russian President Vladimir Putin said Moscow would revise its negotiating stance on Ukraine following what he described as alleged drone attacks on his residence — comments that added further uncertainty to already fragile U.S.-led peace efforts. The remarks fueled concerns that the conflict could drag on, sustaining safe-haven demand for gold.
Tensions in the Middle East also lent support to bullion after U.S. President Donald Trump warned on Monday that the U.S. would strike Iran again if it attempted to rebuild its nuclear program.
In Asia, broader risk sentiment was tested after China launched roughly 10 hours of live-fire military drills around Taiwan on Tuesday.
Gold remains one of the strongest-performing assets this year, underpinned by its role as a hedge against geopolitical shocks and inflation, as well as by dollar weakness.
Fed minutes in focus as markets gauge policy outlook
Expectations that the Federal Reserve will deliver additional interest-rate cuts in 2026 have also supported precious metals, as lower rates reduce the opportunity cost of holding non-yielding assets such as gold, silver, and platinum.
Still, Monday’s sharp decline was seen as a healthy consolidation following an extended rally, with year-end thin liquidity amplifying price swings and profit-taking across the precious-metals complex.
Investors are now awaiting the release of minutes from the Fed’s latest policy meeting later on Tuesday, which are expected to shed more light on policymakers’ views on inflation, economic conditions, and the path of interest rates — potentially shaping expectations around the pace and timing of future easing.
Silver and platinum rebound after steep selloff
Other metals also moved higher on Tuesday after sharp declines from recent peaks.
Silver jumped nearly 3% to $74.32 per ounce after tumbling from a record $83.62 per ounce on Monday, while platinum rose 2.1% to $2,154.60 per ounce after sliding 14% in the prior session.
Benchmark London Metal Exchange copper futures climbed 2.4% to $12,501.20 a ton, and U.S. copper futures added 2.5% to $5.71 a pound.
