Gold reached a record high Tuesday, driven by lower-than-expected U.S. inflation data and ongoing geopolitical and economic uncertainties, while silver also hit a new peak.

U.S. core CPI rose 0.2% month-on-month and 2.6% year-on-year in December, strengthening bets on Federal Reserve rate cuts later this year.

Investors see lower interest rates as favorable for non-yielding metals, amid safe-haven demand amid tensions involving the U.S., Iran, and the Ukraine conflict.

Trump’s comments pushing for meaningful rate cuts and the criminal investigation into Fed Chair Jerome Powell added to market volatility, CNBC has reported.

Commerzbank raised its 2026 year-end gold forecast to $4,900, while silver, platinum, and palladium also saw gains in volatile trading.