REUTERS

Precious metals rebounded on Tuesday, after falling sharply in the previous session, as the market refocused on geopolitical and economic risks, reigniting gold’s rally to cap its best year since 1979.

Spot gold rose 0.8 percent to $4,364.70 per ounce at 2:07 pm ET (1907 GMT).

On Monday, it recorded its biggest daily percentage loss since October 21 as profit-taking pushed it down from Friday’s record high of $4,549.71. US gold futures settled 1 percent higher at $4,386.30.

“We saw very extreme volatility yesterday where we saw strong action in Asian trading to the upside and then rather substantial profit-taking... but things have stabilised somewhat today, the trade remains generally favourable,” said Peter Grant, vice-president and senior metals strategist at Zaner Metals.

Gold, seen as a safe-haven asset, has surged 66 percent in 2025 — its steepest climb since 1979 — propelled by a perfect storm of interest rate easing, geopolitical flashpoints, robust central bank purchases and flows into bullion-backed ETFs.