Gold prices held steady below record levels as markets grappled with ongoing geopolitical tensions and political pressure on the Federal Reserve. Gold steadied at $4,588.9 an ounce, just below Monday's record high of $4,629.4. The rally was fueled by unrest in Iran, where anti-government protests have raised concerns about regional instability. Investors also reacted to the Trump administration's subpoenas of the Federal Reserve, sparking fears of political interference in monetary policy.

Federal Reserve Chair Jerome Powell dismissed these actions as pretexts for political pressure, reaffirming the Fed's commitment to data-driven decision-making. This comes as markets brace for the U.S. Consumer Price Index (CPI) data, expected to provide fresh signals on the Fed's potential interest rate moves. The uncertainty has driven investors to seek safe-haven assets like gold, silver, and platinum, which also saw gains. Silver hit a record high of $86.22 an ounce, while platinum and copper futures showed strong performances, reflecting broader market anxieties.

The political pressure on the Fed underscores a broader trend of increasing government scrutiny of central bank independence. This is not the first time the Trump administration has targeted federal institutions, and it raises questions about the long-term implications for economic policy. Investors are watching closely to see how these developments will impact the Fed's ability to manage inflation and economic stability.

The upcoming CPI report is crucial, as it will influence expectations for rate cuts in 2026. If inflation remains high, it could further complicate the Fed's efforts to balance economic growth with price stability.