Jan 27 (Reuters) - Gold prices pushed higher on Tuesday after breaking through the $5,000 per ounce milestone for the first time in the previous session, as persistent economic and geopolitical uncertainty drove investors to the safe-haven metal.
Spot gold gained 1.5% to $5,090.94 per ounce as of 11:35 a.m. EST (1635 GMT). It hit an all-time high of $5,110.50 on Monday before closing at $5,014.29.
U.S. gold futures for February delivery were up 0.1% at $5,086.90 per ounce.
Gold already has surged 18% so far this year, building on last year's record rally, driven by a combination of factors, including rising geopolitical and economic uncertainty, expectations of U.S. interest rate cuts, and increased central bank purchases amid a global de-dollarization trend.
"Rallies normally end because the drivers that took people into the gold market originally dissipate - and that's just not the case," said Michael Widmer, commodities strategist at Bank of America.
Concerns mounted as U.S. President Donald Trump announced plans on Monday to impose new tariffs on South Korean imports, while the risk of a partial U.S. government shutdown loomed ahead of the January 30 funding deadline.
Markets are focused on the Federal Reserve's two-day policy meeting starting Tuesday, with interest rates expected to be unchanged and investors watching Fed Chair Jerome Powell's Wednesday press conference amid independence concerns. FEDWATCH/
Meanwhile, Deutsche Bank and Societe Generale now forecast gold prices to reach $6,000 per ounce by the end of the year.
CME Group said on Tuesday that its metals complex reached a single-day record of 3,338,528 contracts on January 26, surpassing the previous record of 2,829,666 contracts set on October 17, 2025.
Spot silver jumped 4% to $108.05 an ounce after hitting a record high of $117.69 on Monday. It has already surged more than 50% so far this year, after recording a 146% gain last year.
"There's going to be a lot of volatility ahead, with risks of sharp pullbacks (in silver)," said Bank of America's Widmer, who added that although strong fundamentals and exchange-traded fund inflows could support a $170 price target.
Citi upgraded its short-term silver price forecast to $150 per ounce from $100 earlier.
Spot platinum fell 7.7% to $2,546.35 per ounce after hitting a record $2,918.80 in the previous session, while palladium lost 4.7% to $1,888.75.
Reporting by Anmol Choubey in Bengaluru; Editing by Paul Simao and Shinjini Ganguli
