Gold prices surged to a one‑week high on Tuesday, rising 0.5% to $1,469.96 per ounce at 0534 GMT after a nearly 3% jump in the previous session. The rally reflects growing expectations that the Federal Reserve will cut rates at least twice this year, a view reinforced by the upcoming non‑farm payroll report due on Friday, which should provide further clues on monetary policy.
The metal’s recent strength continues a broader uptrend that saw gold hit a record $1,549.71 on December 26 and deliver its best annual performance since 1979, climbing 64% over the year. US gold futures for February delivery also rose, gaining 0.7% to $1,481.30. Investors are turning to gold as a safe‑haven asset amid heightened geopolitical tension in Venezuela, where ousted President Nicolás Maduro pleaded not guilty to narcotics charges after his capture by the U.S. administration.
Precious‑metal gains were not limited to gold. Spot silver jumped 3.5% to $17.92 per ounce, having peaked at an all‑time high of $18.62 on December 29 and ending 2022 with a 47% annual increase. Spot platinum rose 2.8% to $934.25 per ounce after reaching a record $1,018.50 the previous Monday.
The surge in these metals can be attributed to a weakening U.S. dollar, ongoing geopolitical uncertainties, and expectations of a more dovish stance from the Federal Reserve. As investors monitor global events and key economic indicators, demand for safe‑haven assets is likely to stay strong, supporting the upward trajectory of gold, silver, and platinum. The forthcoming payroll data will further shape expectations for U.S. economic health and the Fed’s interest‑rate decisions, while developments in Venezuela remain a wildcard that could continue to influence precious‑metal markets.
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