Gold prices continued their strong rally during Asian trading on Tuesday, moving closer to record highs as rising geopolitical tensions following a U.S. military action in Venezuela increased demand for safe-haven assets.
Spot gold inched up 0.2% to $4,458.20 an ounce by 01:22 ET (06:22 GMT), while U.S. gold futures gained 0.4% to $4,469.10 per ounce. The precious metal had jumped 2.7% in the previous session, marking its sharpest daily advance in weeks as investors sought protection amid growing global uncertainty.
Gold briefly touched an all-time high of $4,549.71 per ounce last week, before profit-taking triggered a pullback. Prices have since rebounded and remain within striking distance of peak levels.
Venezuela tensions and Fed rate-cut bets lift gold
The latest rally was fueled largely by developments in Venezuela, where U.S. forces carried out a surprise operation over the weekend that led to the capture of President Nicolas Maduro. The event sharply increased geopolitical risk and unsettled commodity markets.
Maduro was flown to the United States to face long-standing narcotics charges and pleaded not guilty in a New York court on Monday, officials said. A report by Reuters also said U.S. President Donald Trump plans to meet executives from major American oil companies to discuss boosting Venezuelan oil output.
Concerns that tensions could persist, alongside potential policy shifts, have reinforced gold’s role as a hedge against market volatility.
Bullion also benefited from expectations that U.S. interest rates will continue to move lower in 2026. Markets are currently pricing in two additional rate cuts by the Federal Reserve this year, an environment that typically supports non-yielding assets such as gold.
On Monday, Minneapolis Fed President Neel Kashkari said inflation in the United States was gradually easing, adding to hopes that the central bank could have room to loosen monetary policy if price pressures continue to cool.
Investors are now awaiting key U.S. economic data for further signals on the Fed’s outlook. December’s non-farm payrolls report, due on Friday, is expected to provide a crucial test of labor market strength and could shape interest rate expectations in the months ahead.
Silver, platinum gain; copper hits record
Other metals also traded higher on Tuesday. Silver surged 3% to $78.78 an ounce, while platinum climbed 2% to $2,331.25 per ounce.
Copper prices extended their rally, with benchmark futures on the London Metal Exchange rising 2.2% to a record $13,331 per ton. U.S. copper futures advanced 1.5% to $6.07 a pound, also a record high.
Analysts at ING said copper’s gains continue to be driven by mine supply disruptions and changes in global trade flows linked to tariffs imposed by the Trump administration.
