Gold Holds Below Record Highs as Markets Focus on Fed Independence and U.S. Inflation Data
Gold prices steadied just below record levels on Tuesday as investors weighed ongoing geopolitical tensions in Iran alongside unprecedented political pressure on the U.S. Federal Reserve, while awaiting the release of key U.S. inflation data later in the day.
Spot gold traded largely unchanged at $4,588.9 per ounce in early trading, after surging to an all-time high of $4,629.4 per ounce in the previous session.
U.S. gold futures for March delivery edged 0.4% lower to $4,596.81 per ounce.
Iran Unrest and Fed Independence in Focus as CPI Looms
The recent rally in gold prices has been fueled by escalating unrest in Iran, where widespread anti-government protests have prompted warnings from U.S. officials about possible intervention. The situation has raised concerns about broader regional instability, increasing demand for safe-haven assets such as gold.
Geopolitical risks remain elevated, with ongoing protests in Iran adding to market unease, while renewed political rhetoric from President Donald Trump has further supported upside momentum in precious metals.
Gold buying in the previous session was also driven by turmoil surrounding U.S. politics and monetary policy. The Trump administration served the Federal Reserve with grand jury subpoenas and opened a criminal investigation into Fed Chair Jerome Powell, focusing on his congressional testimony in June regarding renovation work at the central bank’s headquarters.
The developments sparked fears of political interference in the independence of the central bank. Powell publicly described the subpoenas and the threat of criminal indictment as “pretexts” designed to pressure the Federal Reserve into altering its interest rate policy, reaffirming that monetary decisions would continue to be guided by economic data rather than political considerations.
Markets are now turning their attention to the release of the U.S. Consumer Price Index later on Tuesday. The inflation report is expected to provide fresh insight into whether the Federal Reserve may have room to cut interest rates in 2026.
Broader Metals Market Remains Supported
Silver prices also reached record highs in the previous session. On Tuesday, silver was largely unchanged at $84.94 per ounce, after climbing to an all-time high of $86.22 per ounce on Monday.
Platinum prices declined by 1.4% to $2,310.09 per ounce, following gains of more than 3% in the prior session.
Copper prices eased modestly after recent strong gains. Benchmark copper futures in London slipped 0.6% to $13,089.20 per metric ton, while U.S. copper futures fell 0.3% to $5.99 per pound.
Despite the pullback, both copper contracts remained close to the record highs reached last week, reflecting continued strength across industrial metals markets.