Gold steadies after sharp retreat from record highs; haven demand lends support

Gold prices rose modestly in Asian trading on Tuesday after falling sharply from near record highs in the previous session, as year-end profit taking eased and investors reassessed a range of geopolitical tensions.

Spot gold was last up 0.7% at $4,362.30 an ounce by 00:12 ET (06:12 GMT). U.S. Gold Futures for February delivery rose 0.8% to $4,37875/oz.

Gold touched a record high of $4,549.71/oz on Friday last week but sharply retreated from those peaks on Monday amid profit-taking.

Other precious metals also came under pressure. Silver and platinum, which had surged to multi-year or record peaks alongside gold, slumped sharply on Monday as traders exited long positions.

Gold supported by geopolitical tensions
The pullback came despite a broadly supportive backdrop for bullion, including persistent geopolitical risks, a weaker U.S. dollar, and expectations of further monetary easing by the Federal Reserve in 2026.

Geopolitical developments remained firmly in focus. Russian President Vladimir Putin said Moscow would revise its negotiating position on Ukraine after what he described as alleged drone attacks on his residence, adding fresh uncertainty to already faltering U.S.-led peace efforts.

The comments raised concerns that the conflict could persist, sustaining safe-haven demand for gold and other precious metals.

Tensions in the Middle East also underpinned bullion sentiment after U.S. President Donald Trump said on Monday that the U.S. would strike Iran again if it attempted to rebuild its nuclear programme.