Gold remained elevated in early Asian trading on Tuesday following a run of record highs driven by concerns around U.S. trade policy and heightened geopolitical tensions worldwide. Investors continued to favour safe-haven assets as markets awaited a scheduled U.S. Federal Reserve meeting this week, with the central bank widely expected to keep policy rates unchanged on Wednesday.
By 19:40 ET (00:40 GMT), spot gold was steady at $5,040.74 an ounce. April gold futures eased about 1% to $5,072.86/oz. The metal reached an intraday record of $5,111.11/oz on Monday, underscoring recent volatility and investor appetite for protection amidst policy uncertainty.
Other precious metals advanced alongside gold. Spot silver was trading higher by roughly 3.2% at $107.1735/oz, while spot platinum rose about 1.4% to $2,621.21/oz. These moves reflected a broader shift toward metals typically perceived as havens during periods of elevated geopolitical and economic risk.
Safe-haven flows into precious metals accelerated after the U.S. president threatened trade tariffs against several allies, most notably signaling what amounted to an effective trade embargo on Canada. The president objected to a proposed trade arrangement between Canada and China and warned of 100% tariffs on Ottawa.
Additional tariff threats included a stated plan to raise tariffs on South Korean goods to 25%, citing delays by Seoul in implementing a recent trade deal. While the president scaled back some of his other demands, including tone downed rhetoric regarding Greenland and tariff threats on Europe, markets remained sensitive to any new policy escalations.
Geopolitical tensions in Iran and the broader Middle East also contributed to market unease, as the presence of U.S. naval vessels in the region was noted as an additional source of concern. Together, these trade and security developments kept investor risk appetite muted and underpinned demand for precious metals.
With the Federal Reserve meeting looming and geopolitical headlines continuing to influence sentiment, market participants remained alert to further shifts that could affect the trajectory of gold and related assets.