Sources: Investing
Published: 14/01/2026
, 9:12 am
Investing.com — Gold prices fell below record levels Tuesday, driven by a strong dollar despite data showing slowing U.S. inflation just as geopolitical turmoil in Iran continues to rise.
At 5:00 p.m. ET (22:00 GMT), Spot gold traded 0.4% to $4,586.65 an ounce, after jumping to a record high of $4,629.4/oz in the previous session, and U.S. Gold Futures for March slipped 0.5% to $4,594.15/oz.
U.S. core inflation slows
U.S headline inflation in December matched both the preceding month, with consumer prices rising by 2.7% annually and by 0.3% on a month-on-month basis. Both equaled November’s rates, and were in line with economists’ expectations.
Stripping out volatile items like food and fuel, the so-called “core” consumer price index from the Labor Department came in at an annualized 2.6% and 0.2% month-on-month. These were also the same as November’s reading, and were slightly cooler than estimates.
Iran unrest, Fed autonomy in focus
The record rally came against the backdrop of escalating unrest in Iran, where anti-government protests have drawn warnings from the U.S. of possible intervention, spurring concerns about broader regional instability and supporting haven flows into bullion.
“Protests in Iran keep geopolitical tensions elevated, while President Trump has reiterated threats to take Greenland, bringing further upside to precious metals,” ING analysts said in a note.
The previous session’s buying was also driven by turmoil in U.S. politics and monetary policy.
The Trump administration served the Federal Reserve with grand jury subpoenas and opened a criminal investigation into Chair Jerome Powell, centering on his June congressional testimony about a renovation project at the Fed’s headquarters and triggering fears of political interference in central bank independence.
Powell, in a public statement, described the subpoenas — and threats of criminal indictment — as “pretexts” for exerting pressure on the Fed to alter its interest-rate policy, and reaffirmed the central bank’s commitment to setting policy based on economic conditions rather than political influence.
The U.S. Consumer Price Index (CPI) release was due later Tuesday, with markets bracing for the inflation report to provide fresh signals on whether the Federal Reserve is likely to cut interest rates in 2026.
Metal markets remain supported
Silver prices also hit fresh record highs, gaining 2.4% to $87.115/oz on Tuesday.
Platinum prices fell 0.5% to $2,369.25/oz after gaining more than 3% in the previous session.
Benchmark Copper Futures on the London Metal Exchange gained 0.2% to $13,193.65 a ton, while U.S. Copper Futures traded largely unchanged at $6.033 a pound.
Both contracts saw sharp gains on Monday and remained near all-time highs touched last week.
Citi lifts near-term gold, silver forecast
Citi has raised its near-term price forecasts for gold and silver as the Wall Street firm expects the precious metals bull market to remain intact through the early part of 2026.
Citi strategists lifted their 0–3 month target for gold to $5,000 an ounce and for silver to $100 an ounce, citing “heightened geopolitical risks, ongoing physical market shortages, and renewed uncertainty on Fed independence.”
Gold has recently pushed to record highs, rising 7% over the past month and 12% over the past three months, but Citi reiterated its long-standing view that silver should outperform the bullion.
Over the same periods, silver has gained 36% and 60%, while the rally has broadened into industrial metals, with copper and aluminium also posting strong gains.
“Our longstanding call for silver to outperform and for the precious metals bull market to broaden into industrial metals and for industrial metals to take centre stage over the same periods has worked well,” strategists wrote.
