Gold, silver rise to near record highs on lingering safe-haven demand

Gold and silver prices remained near record levels on Tuesday as safe-haven demand stayed firm amid geopolitical uncertainty, currency weakness and investor caution ahead of key central bank developments.

Spot gold rose 1.1% to $5,068.05 per ounce in early Asian trading, after touching a record high of $5,110.50 in the previous session. US gold futures for February delivery gained 0.4% to $5,063 per ounce.

Market sentiment was supported by renewed trade tensions after US President Donald Trump said he would raise tariffs to 25% on South Korean auto, lumber and pharmaceutical imports, citing stalled trade negotiations. The move followed earlier tariff threats directed at Canada, adding to global policy uncertainty.

The dollar remained under pressure, hovering near a four-month low as the Japanese yen strengthened and investors weighed domestic US risks, including the possibility of a government shutdown and uncertainty around economic policymaking. A weaker dollar has made dollar-denominated gold more attractive for overseas buyers.

Attention has also turned to the US Federal Reserve, which is expected to keep interest rates unchanged at its policy meeting starting later on Tuesday. The meeting comes amid political scrutiny of the central bank leadership and speculation around upcoming changes at the Fed.

Silver continued its strong momentum, rising 6.3% to $110.39 per ounce after hitting a record $117.69 on Monday. The metal has gained around 55% so far this year.

In contrast, platinum slipped 2.5% to $2,688.12 per ounce after touching a record high in the previous session, while palladium edged up 0.1% to $1,980.50.

Separately, consolidation activity picked up in the mining sector, with China’s Zijin Gold agreeing to acquire Canada-based Allied Gold in a cash deal valued at about $4.02 billion, as higher prices continue to boost miners’ margins and cash flows.