Gold Surges Past $5,000 as Trump Tariff Threats Drive Safe Haven Demand

TLDR

• Gold rose above $5,000 per ounce for the second straight day, marking its seventh consecutive day of gains as investors flee currencies and sovereign bonds.
• President Trump threatened 25% tariffs on South Korean goods and 100% tariffs on Canada over a potential trade deal with China, adding to market uncertainty.
• Silver surged over 9% to reach $112 per ounce, approaching its all-time high of $117.71, with a 57% gain since the start of 2026.
• The weak US dollar helped push precious metals higher, with speculation about US support for Japan’s yen making gold cheaper for most buyers.
• OCBC bank raised its 2026 gold price target to $5,600 per ounce, up from previous forecasts of $4,800, citing ongoing geopolitical and economic risks.

Gold prices climbed above $5,000 per ounce on Tuesday, extending a seven-day winning streak. The precious metal jumped as much as 1.8% as investors continued moving away from currencies and government bonds.

President Donald Trump announced plans to raise tariffs on South Korean goods to 25%. The president claimed Seoul was delaying a recent trade deal. This follows his weekend threat to impose 100% tariffs on Canada if the country makes a trade agreement with China.

The US dollar weakened on Monday, with speculation mounting that the US may help Japan support the yen. This currency movement made precious metals cheaper for most international buyers. Gold traded at $5,083.27 per ounce as of 4:07 p.m. in Singapore.

The metal has more than doubled in price over the past two years. It posted a 17% gain so far in 2026 after recording its best annual performance since 1979. Investors are fleeing to gold as a hedge against currency debasement and government fiscal spending.

Silver prices surged over 9% to reach $112.03 per ounce on Tuesday. The white metal has gained 57% since the beginning of the year. On Monday, silver posted its largest intraday jump since the 2008 global financial crisis.

Physical Demand Collides With Speculation

Options traders are preparing for more upside in the market. Implied volatility of Comex futures reached the highest level since March 2020 during the peak of the Covid-19 pandemic. Volatility on State Street’s SPDR Gold Shares, the world’s largest bullion-backed ETF, also broke out higher.

Tariffs and Geopolitical Tensions Fuel Rally

Trump’s recent actions have unsettled markets beyond trade policy. The administration has threatened to annex Greenland and discussed potential military intervention in Venezuela. Trump has also renewed criticism of the Federal Reserve’s independence.

Heightened geopolitical tensions in Iran and the Middle East added to market concerns. US ships arrived in the region, keeping investors on edge about potential conflicts.

The Federal Reserve is widely expected to keep interest rates unchanged at its Wednesday meeting. A steadier jobs market has restored some consensus after months of division. Investors are awaiting Trump’s pick for the next Fed chair after he said he finished interviewing candidates.

Banks Raise Price Targets

Singaporean bank OCBC raised its gold price target for 2026 on Tuesday. The bank now expects bullion to end the year around $5,600 per ounce, up from prior forecasts of $4,800. OCBC cited an increasingly risk-averse environment with ongoing geopolitical tensions and economic uncertainty.

Platinum climbed 5.3% and palladium rose 2.9% on Tuesday. The Bloomberg Dollar Spot Index edged up 0.1% after falling 0.4% in the previous session.

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