Comex gold futures surged $61 to settle at $4,151 per ounce on Tuesday, while silver prices climbed $2.35 to break the $60 barrier at $60.24.
The sharp advance in precious metals was fueled by growing investor optimism regarding diplomatic efforts to ease tensions between the United States and Iran.
The rally in gold and silver coincided with a decline in crude oil prices, which helped reduce near-term inflation concerns and eased pressure on central banks.
Lower energy costs typically support the case for a more dovish monetary policy stance, further boosting the appeal of non-yielding assets like bullion.
This latest move follows a pattern of volatility in precious metals markets linked to geopolitical developments in the Middle East.
On July 21, gold and silver futures posted significant gains as renewed diplomatic efforts to broker a ceasefire between the US and Iran improved sentiment.