Gold prices lifted to fresh record highs during Asian trading on Tuesday as heightened geopolitical risks and trade uncertainties bolstered safe-haven demand.
By 4:10 pm AEDT (5:10 am GMT) spot gold was up $10.95 or 0.4% to fresh record highs of US$3,012.26 per ounce.
Market volatility intensified after the United States reaffirmed its commitment to military strikes against Yemen’s Houthis until they halt attacks on Red Sea shipping.
U.S. President Donald Trump warned on Monday that Iran would be held accountable for any Houthi aggression. The Trump administration has since escalated the largest U.S. military operation in the Middle East since his return to office.
ANZ analysts adjusted their gold price forecasts, stating: "We maintain our bullish view, amid strong tailwinds from escalating geopolitical and trade tensions, easing monetary policy and strong central bank buying.
"We raised our 0–3-month price forecast to USD 3,100/oz and 6-month forecast to USD 3,200/oz."
The Houthis claimed responsibility for an attack on Sunday involving 18 ballistic and cruise missiles, along with drones, targeting the USS Harry S. Truman aircraft carrier and its escorting warships in the northern Red Sea.
Meanwhile, Israeli forces launched extensive airstrikes on Hamas targets in Gaza, with medics reporting at least 30 fatalities.
The strikes marked the most intense military action since the ceasefire began on January 19. A senior Hamas official accused Israel of unilaterally violating the agreement, according to Reuters.
Looking ahead, investors are focused on upcoming central bank policy meetings, particularly the U.S. Federal Reserve’s decision later this week. The Fed is expected to keep interest rates unchanged, with markets pricing in only two rate cuts this year amid ongoing trade and economic pressures.
