Yahoo Finance UK reporter Pedro Goncalves writes:
Gold prices rose on Tuesday to a one week high as comments from US Federal Reserve officials reinforced expectations of interest rate cuts and tensions involving Venezuela increased demand for safe haven assets.
Gold futures gained 0.5% to $4,472.40 an ounce, while spot prices rose 0.8% to $4,467.14 at the time of writing. The metal is trading less than $100 below its record peak of $4,548.92 reached last month.
Ilya Spivak, head of global macro at Tastylive, said the latest remarks from policymakers had supported prices but were not decisive. “[Comments by Fed officials] certainly didn’t hurt but it doesn’t look like the calculus has changed all that much. We of course have a big week this week with the jobs report on Friday,” he said.
Minneapolis Fed president Neel Kashkari said on Monday that inflation was easing gradually but warned the unemployment rate could “pop” higher, raising the likelihood of a rate cut.
Investors are currently pricing in at least two rate cuts this year and are awaiting the US payrolls report due on Friday for further guidance on monetary policy. Non yielding assets such as gold tend to benefit from lower interest rates and periods of geopolitical or economic uncertainty.
“Geopolitical concerns seem likely to persist in 2026, and while risk assets remain solid performers, we think gold – considered a safe-haven asset – will also do well,” Yusuke Matsuo, senior market economist at Mizuho Securities, wrote in a client note.