Gold inches closer to record peak as geopolitical risks lift safe-haven demand
Gold extended gains on Tuesday, buoyed by safe-haven demand after the US capture of Venezuela's president fueled global tensions, while investors awaited US payroll data for insights into the Federal Reserve's interest rate policy.
Spot gold was up 0.8% at $4,485.39 per ounce by 01:40 p.m. ET (1840 GMT), after a nearly 3% gain in the previous session, bringing prices closer to the record high of $4,549.71 hit on December 24.
US gold futures for February delivery settled 1% higher at $4,496.10.
“Precious metals traders see more risk on the horizon than stock and bond traders do at present,” said Jim Wyckoff, senior analyst at Kitco Metals, adding that the weekend US raid on Venezuela has fueled continued safe-haven demand for gold and silver.
Toppled Venezuelan President Nicolas Maduro pleaded not guilty on Monday to narcotics charges, after the US seized him and took him to New York over the weekend.
Gold, considered a traditional safe haven, climbed 64.4% last year, logging its best annual performance since 1979.
Market participants are also looking to Friday's US monthly employment report, which is anticipated to show 60,000 jobs added in December, a slight drop from 64,000 the previous month.
Traders are pricing in two Federal Reserve rate cuts this year, according to LSEG data.
Meanwhile, Richmond Fed President Tom Barkin stated that further rate changes must be “finely tuned” to balance both unemployment and inflation risks.
Non-yielding gold tends to benefit from low-interest-rate environments.
Morgan Stanley projected gold prices could surge to $4,800 by the fourth quarter of this year, citing falling interest rates, Federal Reserve leadership changes and robust central bank and fund purchases.
Spot silver, which hit an all-time high of $83.62 on December 29, gained 5.4% to $80.68 per ounce. Silver recorded its strongest annual gain in 2025, surging 147% on rising industrial and investor appetite.
Spot platinum was up 7.2% at $2,435.20 per ounce, while palladium traded 5.9% higher at $1,821.68 per ounce.
(Source: Reuters)
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