Gold Prices Hold Firm Below Record as Investors Cash In Gains

BY COMFORT OGBONNA

Gold prices remained broadly steady on Tuesday, hovering just under the historic $4,600 per ounce mark set in the previous session. The pause in momentum came as investors engaged in profit-taking following one of the metal’s strongest rallies in years, driven by escalating geopolitical tensions and concerns about global economic stability.

Spot gold traded close to $4,594 per ounce in early Asian hours, barely changed from Monday’s highs, while U.S. gold futures for February dipped slightly as traders locked in some of their recent gains. Analysts say the pullback is natural after such a rapid surge, noting that any price softness appears quickly met with renewed buying from investors looking to hedge against market uncertainty.

Gold had soared more than 2% the day before, touching a fresh all-time high above $4,629 an ounce. The leap was fuelled by investors rushing into safe-haven assets following escalating political stress in Washington, including the U.S. Justice Department’s criminal investigation into Federal Reserve Chair Jerome Powell. The news rattled financial markets and increased fears surrounding the central bank’s policy direction.

Geopolitical anxiety was further stoked by President Trump’s announcement that any nation conducting business with Iran will be hit with a 25% tariff, a warning issued as Washington weighs its response to violent anti-government protests erupting across Iran. These developments arrive just as the administration asserts its influence abroad—having taken custody of Venezuela’s Nicolas Maduro and even floating the idea of purchasing Greenland.

Against this volatile backdrop, non-yielding assets such as gold typically become more attractive, especially in environments where interest rates are low and economic or political risk remains elevated. Market strategists expect investor appetite for precious metals to stay strong if conditions do not stabilise.

Supporting this outlook, Citi revised its three-month forecast, lifting its gold target to $5,000 per ounce and silver to $100 per ounce. The firm cited a powerful wave of investment inflows and a cluster of bullish catalysts it believes will persist through the first quarter. Analysts have also warned that physical shortages in silver and platinum group metals could intensify in the near term, especially if pending U.S. tariff decisions disrupt supply chains.

Silver extended its upward run, moving 0.6% higher to around $85 an ounce after hitting a record high the previous day. Platinum edged lower, slipping nearly 1% after having touched its own recent peak late last month. Despite minor fluctuations, both metals have benefited from the same risk-driven investment boom that has propelled gold to unprecedented heights.

With geopolitical tensions simmering and investor nerves heightened, precious metals continue to reinforce their role as the market’s preferred safe harbour—at least for now.