Gold continued its gains during Tuesday's trading, recording its highest level in a week, supported by dovish statements from Federal Reserve officials that reinforced expectations of an interest rate cut, along with escalating tensions related to Venezuela, which revived demand for safe havens.
Spot gold rose 0.4% to $4,463.63 an ounce after jumping nearly 3% in the previous session. The precious metal hit a record high of $4,549.71 on December 26, ending 2025 with its best annual performance since 1979, after a year-on-year gain of 64%.
Gold futures in the United States for February delivery also rose by 0.5% to $4,473.90, indicating continued positive momentum in the precious metals market in the near term.
Monetary policy supports the upward trend.
Market sentiment suggests that the Federal Reserve officials' comments did not fundamentally alter the overall picture, but they did contribute to increased optimism. The main focus remains on a week packed with economic data, headlined by the highly anticipated US jobs report due on Friday, which is seen as a crucial indicator of the future direction of monetary policy.
The president of the Federal Reserve Bank of Minneapolis confirmed that inflation rates are gradually declining, with risks of rising unemployment, which increases the likelihood of resorting to interest rate cuts in the coming period to support economic activity.
Investor expectations indicate that at least two interest rate cuts are likely to be implemented this year, amid widespread anticipation of non-farm payroll data as a key factor in guiding monetary policy decisions.
Geopolitics boosts demand for safe havens
On the geopolitical front, markets were thrown into turmoil following sudden developments concerning Venezuelan President Nicolas Maduro, who pleaded not guilty to drug-related charges after being arrested by the United States, a move that alarmed world leaders and complicated the political landscape in Caracas.
These developments are interpreted as an indication of the widening gap between the United States and China, and as a reinforcement of a growing global trend toward deglobalization, which adds a new layer of political and economic uncertainty.
In such environments, non-yielding assets, especially gold, tend to perform strongly, particularly in light of low interest rates and escalating geopolitical and economic risks.
Strong gains in the remaining precious metals
Spot silver prices rose 2.8% to $78.64 an ounce, after hitting a record high of $83.62 on December 29. Silver ended 2025 with a massive 147% annual gain, significantly outperforming gold, marking its best annual performance ever.
The spot price of platinum also rose by 2% to $2,315.69 an ounce, after hitting a historic high of $2,478.50 at the start of last week, and had risen by more than 5% earlier in the session to its highest level in a week.
Palladium, for its part, recorded a rise of 2.2% to reach $1,745.68 per ounce, benefiting from the general wave of optimism sweeping through the precious metals markets amid declining returns and rising global uncertainty.
