Gold prices were relatively stable on Tuesday, with the precious metal moving within a narrow range below its recent record highs, driven by profit-taking after a strong rally. This relative calm comes amid heightened geopolitical and economic uncertainty in global markets, keeping demand for safe-haven assets strong.
Price movements in global markets
gold prices were little changed at $4,593.81 per ounce by 03:57 GMT, holding near the $4,600 mark. Meanwhile, U.S. gold futures (February delivery) edged down 0.3% to $4,602.70. Among precious metals , silver bucked the trend, rising 0.6% to $85.42 per ounce, while platinum fell 0.7% to $2,327.43 and palladium declined 1.4% to $1,817.21.
The political context and its impact on markets
This performance comes at a highly sensitive time for financial markets, with gold rising by more than 2% this week, reaching an all-time high of $4,629.94 in the previous session. The main driver of this historic surge is the rush by investors to safe-haven assets following news that the Trump administration has opened a criminal investigation against Federal Reserve . Historically, central bank independence is a cornerstone of financial stability, and any threat to this independence generates immediate concerns about monetary policy and the future of the currency, prompting capital to flee to gold as a traditional hedge against institutional turmoil.
Forecasts from major financial institutions
In light of these rapidly evolving circumstances, Citigroup updated its outlook, raising its three-month price target for gold to $5,000 per ounce and its target for silver to $100 per ounce. The firm noted in its report that strong investment momentum, supported by multiple bullish factors, is likely to persist throughout the first quarter of the year. This optimism reflects analysts' belief that current tensions are not temporary and that the economic and political environment will continue to support precious metals as a safe haven against anticipated volatility.
