Gold prices steadied below record levels on Tuesday as markets digested ongoing geopolitical turmoil in Iran and unprecedented U.S. political pressure on the Federal Reserve, while investors awaited key U.S. inflation data later in the day.

Spot gold last traded flat at $4,588.9 an ounce by 01:08 ET (06:08 GMT), after jumping to a record high of $4,629.4/oz in the previous session.

U.S. Gold Futures for March slipped 0.4% to $4,596.81/oz.

Iran unrest, Fed autonomy in focus; US CPI awaited

The record rally came against the backdrop of escalating unrest in Iran, where anti-government protests have drawn warnings from the U.S. of possible intervention, spurring concerns about broader regional instability and supporting haven flows into bullion.

"Protests in Iran keep geopolitical tensions elevated, while President Trump has reiterated threats to take Greenland, bringing further upside to precious metals," ING analysts said in a note.

The previous session’s buying was also driven by turmoil in U.S. politics and monetary policy.

The Trump administration served the Federal Reserve with grand jury subpoenas and opened a criminal investigation into Chair Jerome Powell, centering on his June congressional testimony about a renovation project at the Fed’s headquarters and triggering fears of political interference in central bank independence.

Powell, in a public statement, described the subpoenas -- and threats of criminal indictment -- as “pretexts” for exerting pressure on the Fed to alter its interest-rate policy, and reaffirmed the central bank’s commitment to setting policy based on economic conditions rather than political influence.

The U.S. Consumer Price Index (CPI) data was due later Tuesday, with markets bracing for the inflation report to provide fresh signals on whether the Federal Reserve is likely to cut interest rates in 2026.

Metal markets remain supported

Silver prices also hit record highs in the previous session. Silver prices were largely unchanged at $84.94/oz on Tuesday after hitting a record high of $86.22/oz on Monday.

Platinum prices fell 1.4% to $2,310.09/oz after gaining more than 3% in the previous session.

Benchmark Copper Futures on the London Metal Exchange slipped 0.6% to $13,089.20 a ton, while U.S. Copper Futures dipped 0.3% to $5.99 a pound.

Both contracts saw sharp gains on Monday and remained near all-time highs touched last week.