Gold prices continued to rise on Tuesday, supported by renewed safe-haven demand after heightened geopolitical tensions following the US seizure of Venezuelan leader Nicolas Maduro. Investors also remained cautious ahead of upcoming US payroll data, which could offer clearer guidance on the future direction of Federal Reserve interest rate policy.
Spot gold climbed 0.8% to $4,485.39 per ounce by early afternoon in New York, extending gains from the prior session when prices surged nearly 3%. This move pushed bullion closer to its record high of $4,549.71, reached on December 24. Meanwhile, US gold futures for February delivery settled 1% higher at $4,496.10.
According to Jim Wyckoff, senior analyst at Kitco Metals, precious metals traders are increasingly focused on downside risks compared with equity and bond investors. He noted that the recent US operation in Venezuela has reinforced demand for traditional safe havens such as gold and silver.
Maduro formally pleaded not guilty on Monday to narcotics-related charges after being transferred to New York following his capture over the weekend, further adding to geopolitical uncertainty.
Gold, widely viewed as a hedge during periods of instability, rose 64.4% last year, marking its strongest annual performance since 1979. Market participants are now closely watching Friday’s US employment report, which is expected to show 60,000 new jobs added in December, slightly below November’s figure of 64,000.
Futures markets indicate traders are pricing in two Federal Reserve rate cuts this year, based on data from LSEG. Richmond Fed President Tom Barkin reiterated that any policy adjustments will need to be carefully calibrated to manage both inflation and labor market risks. Lower interest rates typically support non-yielding assets such as gold.
Adding to the bullish outlook, Morgan Stanley forecast that gold prices could reach $4,800 by the fourth quarter, citing declining interest rates, potential leadership changes at the Fed, and strong buying from central banks and investment funds.
Other precious metals also posted strong gains. Spot silver jumped 5.4% to $80.68 per ounce, after hitting a record high of $83.62 in late December. Silver delivered its best annual performance in 2025, soaring 147% on rising industrial demand and investor interest. Platinum advanced 7.2% to $2,435.20, while palladium climbed 5.9% to $1,821.68.
