Gold Prices Surge to Record Highs Amid Trade Fears and Geopolitical Tensions

Gold prices climbed sharply in Asian trading on Tuesday, extending a rally that has pushed bullion to a series of record highs. The surge reflects growing investor anxiety over U.S. trade policies under President Donald Trump, escalating geopolitical tensions, and cautious sentiment ahead of a key U.S. Federal Reserve meeting. Together, these factors have strengthened safe-haven demand for gold and other precious metals.

Spot gold rose 1.1% to around $5,062.97 per ounce in early Asian hours, while April gold futures slipped slightly to $5,098.26 per ounce. Despite the marginal pullback in futures, spot gold remained near historic levels after hitting a record high of $5,111.11 per ounce on Monday. The strong performance highlights gold’s role as a hedge during periods of global uncertainty and market volatility.

Other precious metals also posted solid gains. Spot silver jumped nearly 4% to about $107.94 per ounce, after briefly touching a record high above $111 per ounce. Platinum prices climbed 2.7% to roughly $2,656.27 per ounce, reflecting broad-based strength across the metals complex as investors sought alternatives to riskier assets.

Market nerves have been fueled by renewed trade tensions, particularly after President Trump threatened aggressive tariffs against several U.S. allies. These included warnings of 100% tariffs on Canada over potential trade links with China, as well as an increase in tariffs on South Korean goods to 25%. Although Trump eased some rhetoric regarding Europe and Greenland, uncertainty over future policy moves continues to weigh on global markets.

Geopolitical risks have further supported gold prices, with heightened tensions in Iran and the Middle East following the arrival of U.S. naval assets in the region. Analysts note that such risks, combined with economic and political uncertainty, have broadened gold’s appeal across regions and investor profiles, including strong interest from China and India.

Reflecting this backdrop, Singapore-based OCBC raised its 2026 gold price forecast to $5,600 per ounce, citing sustained demand for safe-haven assets. While short-term profit-taking could trigger brief pullbacks, the long-term outlook for gold remains supported by persistent global uncertainty.