Gold prices extended sharp gains in Asian trading on Tuesday, pushing back toward record high levels, as heightened geopolitical tensions following a U.S. attack on Venezuela bolstered bullion’s safe-haven demand.
Spot gold edged 0.2% higher to $4,458.20 an ounce by 01:22 ET (06:22 GMT). U.S. Gold Futures rose 0.4% to $4,469.10/oz.
The yellow metal surged 2.7% the previous session, its strongest single-day rise in weeks, as investors rushed into the precious metal amid escalating uncertainty in global markets.
It had hit a record high of $4,549.71/oz last week, but heavy profit-taking after that weighed on bullion. Prices have rebounded since then and are not far from peak levels.
Get expert analyst insights on commodities and stock ideas with InvestingPro - 55% off today US attack on Venezuela, Fed cut bets boost gold The rally was driven largely by developments in Venezuela, where U.S. forces launched a surprise operation over the weekend that resulted in the capture of President Nicolás Maduro, sharply raising geopolitical risk and rattling commodity markets.
Maduro was transferred to the U.S. to face long-standing narcotics-related charges and pleaded not guilty in a New York court on Monday, according to officials.
A Reuters report said U.S. President Donald Trump is planning to meet with executives from major U.S. oil companies to discuss ways to boost Venezuelan oil production.
The prospect of prolonged geopolitical friction and policy shifts helped underpin gold’s appeal as a hedge against volatility.
Bullion was also supported by expectations that U.S. interest rates will move further lower in 2026.
Markets are currently pricing in two more rate cuts by the Federal Reserve this year, a backdrop that tends to favor non-yielding assets such as gold.
On Monday, Minneapolis Federal Reserve President Neel Kashkari said inflation in the U.S. was slowly easing, reinforcing hopes that the central bank may have room to loosen policy if price pressures continue to moderate.
Investors are now closely watching upcoming U.S. economic data for further clues on the Fed’s policy path. December’s non-farm payrolls report, due on Friday, is expected to be a key test of the labor market’s resilience and could influence rate expectations in the months ahead.
Silver, platinum upbeat; copper hits record high Other precious and industrial metals also remained upbeat on Tuesday.
Silver prices jumped 3% to $78.78 per ounce, while platinum rose 2% to $2,331.25/oz.
Benchmark Copper Futures on the London Metal Exchange jumped 2.2% to a record high of $13,331.0 a ton. U.S. Copper Futures climbed 1.5% to $6.07 a pound, their highest level on record.
"Copper’s rally continues to be fuelled by mine supply disruptions and distortions to trade flows amid US President Trump’s tariffs," ING analysts said in a note.
