TLDR
- Gold prices climbed above $5,000 per ounce for a second consecutive day, extending a seven-session rally fueled by geopolitical tensions and dollar weakness.
- President Trump imposed 25% tariffs on South Korean imports and threatened 100% duties on Canadian goods, escalating trade war concerns.
- Silver spiked 9% to $112 per ounce, bringing year-to-date gains to 57% as physical demand meets speculative buying.
- Major investment banks raised gold forecasts, with OCBC lifting its 2026 target to $5,600 from $4,800 per ounce.
- The Federal Reserve meets Wednesday with rates expected to remain unchanged as markets digest ongoing trade policy uncertainty.
Gold continued trading above $5,000 per ounce on Tuesday, posting a 1.8% gain during its seventh consecutive day of increases. The metal reached $5,083.27 per ounce in Singapore trading as investors shifted funds from traditional currencies into precious metals.
The US dollar fell Monday on speculation that Washington may support Japan’s efforts to strengthen the yen. This currency movement lowered gold prices for buyers using other currencies. Trump’s expanding tariff agenda pushed more investors toward safe haven assets.
The president announced Monday that tariffs on South Korean products would increase to 25%. Trump said South Korea failed to move quickly on implementing a trade agreement. Over the weekend, he threatened to impose 100% tariffs on Canada if the country negotiates a trade deal with China.
Gold has doubled in value over the last two years. The precious metal is up 17% in 2026 after posting its best yearly gain since 1979. Market experts describe the trend as a debasement trade, where capital flows out of government bonds and currencies.
Silver Demand Reaches Record Levels
Silver outpaced gold with a 9% increase to $112.03 per ounce on Tuesday. The metal has climbed 57% since the start of 2026. Monday’s trading session marked silver’s largest single-day gain since the 2008 global financial crisis.
MKS PAMP SA CEO James Emmett described demand levels as unprecedented. “There’s immense silver demand, in a way that we’ve really not seen before,” he said. He noted that short-term speculators are now driving price action in a market that traditionally lacks heavy speculation.
Market volatility indicators signal expectations for continued price movement. Comex gold futures volatility hit the highest level since March 2020. The SPDR Gold Shares exchange-traded fund also recorded increased volatility readings.
Investment Firms Boost Price Projections
Singapore’s OCBC bank raised its gold price forecast for 2026 on Tuesday. The bank now projects gold will end the year around $5,600 per ounce, up from its earlier estimate of $4,800. Analysts cited growing geopolitical risks and economic uncertainty as drivers.
“Gold is being supported less by any single event risk and more by a sustained backdrop of uncertainty that encourages diversification into non-sovereign assets,” OCBC’s research team wrote. The bank warned that recent gains could prompt some investors to take profits.
Amundi SA chief investment officer Vincent Mortier said shifting global alliances are directing money toward gold. “Gold in the long term is a very good protection against debasement and a good way to maintain some purchasing power,” he told Bloomberg Television.
City Index analyst Fawad Razaqzada observed that traders are purchasing during price dips rather than betting against rallies. “As long as that mindset persists, it is difficult to argue against higher prices in the near term,” he said.
The Federal Reserve’s policy meeting concludes Wednesday with no rate changes expected. Trump said he has completed interviews for the next Fed chair position. Platinum rose 5.3% and palladium gained 2.9% in Tuesday trading.
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