Gold Rises on Geopolitics and Rate-Cut Bets
2026-01-06 15:34
By
Joana Ferreira
1 min. read
Gold prices edged higher to $4,480 per ounce on Tuesday, extending Monday’s 3% surge to a one-week high, as investors sought safe-haven assets amid rising geopolitical tensions and expectations of US interest rate cuts.
The spike follows the US capture of Venezuelan President Maduro over the weekend.
President Trump warned that Washington would temporarily “run” Venezuela and threatened a second strike if the interim government fails to comply with US demands.
Meanwhile, Maduro pleaded not guilty on Monday in a New York court to charges of narco-terrorism and possession of machine guns and destructive devices.
Investors are also eyeing Friday’s nonfarm payrolls report for clues on US monetary policy.
FOMC member Neel Kashkari cautioned that a rise in the unemployment rate could increase the likelihood of a rate cut, with markets pricing in two Fed cuts this year.
Bullion hit a record $4,550 on December 26 and ended 2025 with a 64% gain, its strongest annual performance since 1979.