Gold prices posted sharp gains on Tuesday, rebounding from yesterday's decline following the diminishment of Russia-Ukraine ceasefire prospects, prompting investors to turn to safe-haven investments.
Front Month Comex Gold for January delivery rose sharply by $43.10 (or 1.00%) to $4,370.10 per troy ounce.
Front Month Comex Silver for January delivery catapulted by $7.3710 (or 10.53%) to $77.374 per troy ounce. Notably, this is a new record high for silver, which is up 167.36% year-to-date.
Yesterday, Russia levelled serious accusation against Ukraine of carrying out drone attacks on one of the Russian presidential residences which reportedly did not leave any casualties.
Russian President Vladimir Putin had called the U.S. President Donald Trump and expressed that Russia will reverse its flexible stance in the Trump-led peace talks to end the Russia-Ukraine war.
However, Ukraine denied making any such attempts and called this Russian claim a "complete fabrication" intentionally made by Russia as a ruse to derail the peace process and attack Ukraine further.
For the past several weeks, U.S. negotiators have been engaged in several back-to-back discussions with Russia and Ukraine to implement a peace deal authored by Trump.
On Sunday, Ukrainian President Volodymyr Zelenskyy commented that the talks were progressive, and a new revised draft was 90% ready.
Trump remarked, "we are getting close" to a peace deal.
Further, the telephone calls between the Trump and Putin were hailed as "constructive" by the Russian side.
These developments brightened up the prospect of a ceasefire, which brought down the market's leaning for safe-haven investments.
However, investors now feel that Russia's rigid stance could derail all the progress made so far in securing peace.
These developments considerably increased the appeal of gold as a safe-haven asset.
In South America, the conflict between the U.S. and Venezuela has escalated further, with Trump now claiming a U.S. attack on a shipping dock in Venezuela.
Trump has long accused Venezuelan President Nicolas Maduro's regime of promoting drug-smuggling activities bound for the U.S. and vowed to uproot Maduro from power.
After holding discussions about the progress made in the Middle East Peace Accord with Israeli Prime Minister Benjamin Netanyahu at his Mar-a-Lago residence in Florida, Trump warned Palestinian Hamas militants of "dire consequences" if they disagree to disarm according to their commitment.
Ahead of this meeting, Iran's President Masoud Pezeshkian announced that Iran has engaged in an unprecedented "all-out war" with the U.S. Europe, and Israel.
Trump responded today, stating that if Iran is building up its nuclear program again, the U.S. would eradicate that buildup.
Saudi Arabia has now stepped up its offensive against the Southern Transitional Council (STC) militant group in Yemen which has the backing of the United Arab Emirates.
The separatists moved to capture the oil rich regions of Hadhramaut and the eastern province of al-Mahra in Yemen.
After reportedly conducting airstrikes last Friday, Saudi Arabia bombed the port city of Mukalla in the Hadramout region of Yemen earlier today, targeting a shipment of weapons to be delivered to the STC, accelerating the friction between Saudi Arabia and the UAE.
With the minutes of the U.S. Federal Reserve's December meeting to be released later today, investors are betting on just a 16.1% chance of a quarter-point interest rate cut at the January 27-28 meeting.
The U.S. dollar index was last seen trading at 98.17, up by 0.14 (or 0.14%) today.
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Market Analysis
December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.