Gold Holds Above $5,000 as Dollar Weakness and Tariff Fears Drive Rally

TLDR

• Gold extended gains above $5,000 per ounce on Tuesday, marking seven consecutive days of increases driven by safe haven demand and a weakening US dollar.
• Trump announced 25% tariffs on South Korean goods and threatened 100% tariffs on Canada over potential China trade deals, fueling market uncertainty.
• Silver jumped over 9% to $112 per ounce, posting a 57% gain year-to-date and approaching its record high of $117.71 set Monday.
• OCBC bank increased its 2026 gold forecast to $5,600 per ounce from $4,800, citing sustained geopolitical and economic uncertainty.
• The Federal Reserve is expected to hold interest rates steady at Wednesday’s meeting as investors await Trump’s nomination for the next Fed chair.

Gold prices maintained their position above $5,000 per ounce on Tuesday, climbing as much as 1.8% in their seventh straight session of gains. The precious metal traded at $5,083.27 per ounce in Singapore afternoon trading as investors continued seeking alternatives to traditional currencies and government bonds.

The rally comes as the US dollar weakened on speculation that America may assist Japan in supporting the yen. This currency shift made gold cheaper for international buyers. President Trump’s latest tariff announcements added fuel to the safe haven trade.

Trump stated Monday evening that he would raise tariffs on South Korean goods to 25%. The president claimed Seoul was delaying implementation of a recent trade deal. He also threatened 100% tariffs on Canada if Ottawa pursues a trade agreement with China.

Gold has more than doubled over the past two years. The metal gained 17% in 2026 following its strongest annual performance since 1979. Analysts attribute the surge to what traders call the debasement trade, where investors move away from currencies and Treasury bonds.

Silver Posts Historic Gains

Silver outperformed gold with a 9% jump to $112.03 per ounce. The white metal has surged 57% since January 1, 2026. Monday saw silver’s biggest intraday gain since the 2008 financial crisis.

Options market data shows traders expect further upside. Implied volatility on Comex gold futures reached levels not seen since March 2020 during the pandemic peak. The world’s largest gold ETF, SPDR Gold Shares, also recorded elevated volatility readings.

Banks Update Price Forecasts

OCBC bank revised its 2026 gold price target upward on Tuesday. The Singapore-based institution now expects gold to finish the year near $5,600 per ounce, up from its previous $4,800 forecast. The bank pointed to an increasingly risk-averse investment environment.

The Federal Reserve meets Wednesday and is widely expected to pause its rate-cutting cycle. Markets await Trump’s selection for the next Fed chair after he said candidate interviews have concluded. Platinum gained 5.3% while palladium rose 2.9% on Tuesday.

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