Gold’s rally is gaining fresh conviction as global tensions mount and questions swirl over the independence of the Federal Reserve. Citigroup Inc. has joined a growing list of banks forecasting bullion at $5,000 an ounce and silver at $100 within the next three months, citing geopolitical risks, policy uncertainty and robust investor demand for hard assets.
Risk appetite was mixed across markets. In Asia, shares of Chinese electric-vehicle makers advanced after European officials signaled they are considering minimum pricing arrangements instead of punitive tariffs, a move that would ease pressure on exporters. Hong Kong stocks rose 0.5%, while mainland Chinese benchmarks slipped by a similar margin.
Japan was a focal point, with the 30-year government bond yield jumping above 3.5% for the first time since the 1990s amid speculation that Prime Minister Takashi may dissolve parliament. The move in yields rattled currency markets, sending the yen sharply lower. Japanese equities, reopening after a holiday, surged 2.5% as investors repositioned.
In the West, markets showed resilience despite the recent attack on the Fed’s independence. U.S. and European equities closed modestly higher on Tuesday, though futures on both sides of the Atlantic point to a softer open as investors reassess risks.
Adding to the uncertainty, President Donald Trump vowed to impose an additional 25% tariff on any country doing business with Iran, raising questions about how broadly the measure would be applied — and whether China could be caught in its scope. The prospect of escalating trade frictions and political pressure on institutions continues to underpin demand for safe-haven assets, keeping precious metals firmly in focus.