Gold edged toward a record high as investors looked ahead to US inflation data and monitored escalating tensions in Venezuela. Silver climbed to a fresh peak, extending a powerful rally.
Bullion rose above $4,325 an ounce, recovering from a modest decline in the previous session that snapped a five-day winning streak. Inflation numbers due Thursday will be watched closely for clues on how the Federal Reserve’s appetite for further rate cuts might be impacted. Ahead of the release, several key Fed officials are due to speak publicly.
Gold was also boosted by events in Venezuela, with President Donald Trump ordering a blockade of all sanctioned oil tankers. The US leader is ratcheting up pressure on his Venezuelan counterpart Nicolas Maduro amid a military buildup in the region and the threat of land strikes.
Gold is not far off the record high above $4,381 an ounce set in October. The precious metal has jumped about two-thirds this year and is on track for its best annual performance since 1979. The scorching rally has been driven by elevated central-bank buying, as well as a broader pullback by investors from government debt and key currencies. Geopolitical tensions have also enhanced its haven appeal.
Investors are watching closely for any sign of further monetary easing after the US central bank last week delivered its third consecutive rate cut — a tailwind for precious metals, which don’t pay interest. For now, traders are assigning a near-25% chance of a reduction in January.
Non-farm payroll data released Tuesday showed a continued cooling of the American jobs market, but didn’t move the needle on rate cuts. The Fed is seen giving less weight than usual to economic data due to lingering disruptions caused by the government shutdown.
The appointment of a new Fed chair will provide a further signal on monetary policy next year. Trump — who has called for lowering rates aggressively — is slated to interview Fed Governor Chris Waller on Wednesday for the job, the Wall Street Journal reported on Tuesday, citing unnamed sources. One or two more interviews are expected this week and an announcement is expected sometime in early January, Treasury Secretary Scott Bessent said.
Bullion is expected to average $4,500 an ounce in 2026, according to Nicky Shiels, head of research at precious metals refiner MKS Pamp SA, joining a chorus of predictions that it will push higher. Gold will likely consolidate in the near term “before establishing a milder, more sustainable bullish trajectory” after this year’s “parabolic surge,” Shiels said in a note on Tuesday.
Gold advanced 0.6% to $4,326.36 at 10 a.m. in Singapore. Silver climbed as much as 3% to $65.6463, a fresh record. Platinum gained as much as 3% to touch the highest since 2011, while palladium also rose. The Bloomberg Dollar Spot Index was flat.
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