Gold price steadies near record $4,600 per ounce

Gold prices were largely steady near their all-time peak on Tuesday, supported by concerns over Russia intensifying attacks on Ukraine and the situation in Iran, while investor caution ahead of key inflation data limited upside momentum.

Spot gold traded 0.2 per cent lower at $4,586.15 per ounce as of 1134 GMT, following a record high of $4,629.94 in the previous session. U.S. gold futures for February delivery slipped 0.4 per cent to $4,595.10.

"A modest recovery in the U.S. dollar, driven by hawkish comments from a senior Fed official, and investors’ focus on the release of U.S. CPI data later in the session acts as a headwind (for gold)," said ActivTrades analyst Ricardo Evangelista.

Federal Reserve Bank of New York President John Williams said on Monday that the central bank does not face any near-term pressure to change the stance of monetary policy.

Investors are currently anticipating two interest rate ⁠cuts this year, with today's Consumer Price Index data expected to provide further clues on monetary policy going forward.

On the geopolitical front, Russian forces launched the year’s most intense wave of missile attacks on Ukraine early on Tuesday, killing four people and injuring several others.

U.S. President Trump said on Monday any country that does business with Iran will face a 25 per cent tariff on trade with the United States.

Non-yielding assets tend to do well in a low-interest-rate environment and ⁠when geopolitical or economic ⁠risks spike.

"With (gold) prices consolidating above the $4,500 level, supported by a bearish outlook for the dollar and ongoing geopolitical uncertainty, the $5,000 mark appears increasingly within reach and could be tested in the first half of the year," Evangelista added.

Meanwhile, U.S. exchange operator CME Group (CME.O), opens new tab announced on Monday that it is changing the way it sets margins for precious metals to ensure adequate collateral coverage in view of the current market volatility.

Elsewhere, spot silver gained 0.9 per cent to $85.72 per ounce after hitting an all-time high of $86.22 on Monday.

Spot platinum rose 0.1 per cent to $2,344.89 per ounce after scaling a record peak of $2,478.50 on December 29.

Palladium slid 1.2 per cent to $1,820.75 per ounce.