Gold and silver push higher as investors seek safe havens amid US policy uncertainty
Gold and silver hit fresh records as traders moved into bullion amid US policy jitters, tariff headlines and Fed uncertainty. Analysts warn volatility may persist.
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By Torontoer Staff
Gold and silver extended a rapid rally on Tuesday as investors moved into safe-haven metals amid renewed U.S. policy uncertainty. Spot gold rose 1.6 per cent to US$5,092.09 per ounce at 5:12 a.m. ET, after touching an all-time high of US$5,110.50 on Monday. U.S. gold futures for February delivery traded around US$5,089 per ounce.
Silver surged even more dramatically, jumping 8.4 per cent to US$112.57 an ounce after hitting a record US$117.69 on Monday. Silver is up more than 50 per cent so far this year. Other precious metals showed mixed moves: spot platinum fell 2.5 per cent to US$2,689.12 after a recent record, while palladium rose about 3.3 per cent to US$2,048.28.
What is driving the rally
Analysts point to a mix of geopolitical risk, shifting U.S. policy signals and expectations for future rate cuts as the main drivers behind the demand for bullion. Recent comments and tariff moves from the U.S. administration, plus renewed tensions with Iran, have pushed investors into perceived safe assets.
The constant back and forth on tariffs by President Trump and the U.S. administration, coupled with growing concerns about a military operation in Iran, are unlikely to curb safe-haven demand anytime soon.
Zain Vawda, analyst, MarketPulse by OANDA
Expectations that the Federal Reserve will eventually cut interest rates have also supported precious metals. Lower real yields tend to make non-yielding assets such as gold more attractive. Market participants were focused on a Federal Reserve policy meeting this week, where rates were expected to be held steady, and on developments around the selection of a replacement for Chair Jerome Powell.
Forecasts and market views
Some large banks see room for further gains. Deutsche Bank and Societe Generale forecast that gold could reach US$6,000 per ounce in 2026, underscoring the potential for additional upside if safe-haven demand persists and central bank purchases remain robust.
At the same time, analysts warn of scenarios that could rein in prices. For silver, industrial demand is a key variable. A slowing Mainland Chinese economy could reduce industrial offtake for silver, while improvements in supply conditions would alleviate current tightness.
We expect prices to ease in the coming months as supply tightness eases and industrial demand for silver starts to peak with a slowing Mainland Chinese economy.
BMI, a unit of Fitch Solutions
Other market implications
Rising precious metals prices affect a broad range of investors and sectors. Higher gold and silver prices can lift returns for miners and bullion holders, while elevated silver levels have implications for industries that use the metal in manufacturing and electronics. Precious metals also influence portfolio hedging decisions as traders reweight risk across equities, bonds and commodities.
- Gold: recent record close and a run up of about 18 per cent so far in 2026
- Silver: more than 50 per cent gain year to date, record highs reached
- Platinum and palladium: mixed moves after recent volatility in both markets
- Drivers: geopolitical risk, tariff headlines, Fed outlook, central bank buying
What investors are watching next
Traders will watch the outcome of the Federal Reserve meeting and any signals on the path for rates. Updates on U.S. trade policy, tariff decisions and developments in the Middle East will be monitored closely for their impact on safe-haven demand. Market participants will also track supply-side news for silver and mine output forecasts for other precious metals.
Volatility is likely to continue while policy direction and geopolitical risks remain unclear. For now, bullion remains the preferred shelter for investors seeking to hedge against policy shock and market uncertainty.
goldsilverprecious metalsmarketsFederal Reserve
