Gold Regains Pressure, Record Just a Step Away
Gold prices rose again and approached a record high, as investors awaited Thursday's US inflation data and monitored the escalating situation in Venezuela. At the same time, silver also surged and hit a new high, extending its strong rally.
Spot gold rose above $4,325/oz, rebounding after a slight decline in the previous session that broke a five-day uptrend. The market is now focused on US inflation data, as it could provide clues as to whether the Fed still has the appetite to further cut interest rates. Several Fed officials are scheduled to speak ahead of the inflation release, making the market even more sensitive.
Geopolitically, gold was also boosted by news from Venezuela. Trump ordered a blockade of all sanctioned oil tankers amid increasing pressure on Nicolas Maduro and reports of a US military buildup in the region. Situations like this typically re-encourage gold as a safe-haven asset.
Gold is currently also still near its October high above $4,381/oz. So far this year, gold has surged by about two-thirds, heading for its best annual performance since 1979. Drivers include high central bank buying, investors reducing exposure to bonds and major currencies, and rising geopolitical tensions.
The market is also still monitoring the direction of interest rates after the Fed last week cut its third rate in a row—usually a boon for precious metals since gold doesn't pay interest. However, for the January meeting, the chances of a cut are still considered small (around a quarter), especially since the latest NFP data did show a cooling job market, but not enough to change high expectations.
An additional factor to watch: who will be the next Fed chair. Trump is reportedly interviewing Christopher Waller for the position, and there are one or two more interviews this week, with an announcement expected in early January. Meanwhile, analysts at MKS PAMP predict gold could average $4,500/oz in 2026, but in the near term, gold could potentially consolidate before continuing its "healthy" upward movement. In other metals markets, silver broke a new record, platinum rose to its highest level since 2011, and palladium also strengthened. (asd)
Source: Newsmaker.id
