(RTTNews) – Rebounding from the historic nosedive seen over the two previous sessions, gold prices skyrocketed on Tuesday after major investment banks reaffirmed their confidence in the yellow metal in their projection reports for 2026.
Front Month Comex Gold for February delivery soared by $281.20 (or 6.08%) to $4,903.70 per troy ounce.
Front Month Comex Silver for February delivery also catapulted by $6.2640 (or 8.16%) to $83.042 per troy ounce.
Last week, U.S. President Donald Trump announced that he has chosen Kevin Warsh as his nominee as the next U.S. Federal Reserve Chair.
Warsh being known for his “hawkish” leanings, investors trimmed down their expectations for Fed rate cuts in 2026.
As a result, the U.S. dollar index rose and precious metals declined.
In addition, the Chicago Mercantile Exchange Group increased its margin requirements for metals futures.
Consequently, gold lost heavily in successive sessions.
Today, gold regained ground after global investment bank major JPMorgan updated its 2026 price target for gold to $6,300 per ounce.
The report also predicted that central banks’ demand will remain on an upward trajectory in 2026 and projected purchases by banks to peak up to 800 tons this year.
In addition, Deutsche Bank reaffirmed its forecast for gold to reach around $6,000 in 2026.
In their previous forecasts, Morgan Stanley, Goldman Sachs, and Citi anticipated gold to hit around $5,700, $5,400, and $5,000 in 2026 respectively.
According to the World Gold Council, gold’s annual average price jumped to $3,431 per ounce in 2025, around a 44% increase from the previous year.
After sending an armada of U.S. naval forces near Iran, Trump threatened Iran with severe attacks if it fails to negotiate with the U.S. over its nuclear program.
Initially refusing to buckle under U.S. pressure, Iran’s President Masoud Pezeshkian later ordered his teams to prepare and commence talks soon.
The news eased the Middle East tension. With the geopolitical premium lost, gold prices plunged.
However, analysts speculate that running out of options, Iran either must accept the U.S.-imposed conditions on running its nuclear program (which could trigger a revolt domestically) or face a controlled war with the U.S. that could go on until the U.S. displaces the current regime and hence speculate that the discussions may not conclude as expected.
With the geopolitical risk premium still alive, gold received additional support.
In the ongoing Russia-Ukraine war, Russia struck Ukraine’s Kyiv and Kharkiv with around 450 missiles and 60-plus missiles overnight, leaving Ukrainians struggling to combat the extreme winter without any heating support.
The U.S.-brokered negotiations between the Russia and Ukraine have yet to reach a favorable resolution.
Trump acknowledged that deep-lying animosity between Russia’s President Vladimir Putin and Ukraine’s President Volodymyr Zelenskyy is holding up the peace talks.
The partial U.S. government shutdown entered its fourth day.
With a final vote by House of Representatives later today on the funding package negotiated between Republicans and Democrats, the shutdown is expected to come to an end.
The U.S. dollar index was last seen trading at 97.40, down by 0.23 (or 0.24%) today.
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