Gold extended its record rally Tuesday, reaching $3,500.05 per ounce, as a weaker dollar, political uncertainty, and escalating trade tensions between the United States and China boosted safe-haven buying.
Spot gold steadied at $3,425.91 an ounce by midday U.S. trading, while U.S. gold futures gained 0.4% to $3,438.40. Gold prices have risen more than 30% so far this year, supported by central bank purchases and concerns over global trade.
The dollar declined after U.S. President Donald Trump criticized Federal Reserve Chairman Jerome Powell, fueling anxiety over the central bank's independence. Increased uncertainty around tariffs also contributed to market volatility and strengthened demand for gold.
Technical indicators showed strong upward momentum, with gold's relative strength index at 79, suggesting the metal was in overbought territory.
In other precious metals trading, spot silver rose 0.8% to $32.97 an ounce. Platinum was steady at $962.10, and palladium jumped 1.8% to $944.21.
Investors are awaiting speeches from several Federal Reserve officials later this week for indications on future monetary policy decisions.
