Gold set for weekly gain on US payrolls miss, broader uncertainty

Gold prices rose on Friday and were on track for a weekly gain, as investors weighed weaker-than-expected US payrolls data along with broader policy and geopolitical uncertainty.

Spot gold was up 0.5% at USD 4,496.09 per ounce as of 01:31 p.m. ET (1618 GMT), and was set for about 3.9% weekly gain. Bullion hit a record high of USD 4,549.71 on December 26.

US gold futures for February delivery settled 0.9% higher at USD 4,500.90.

US nonfarm payrolls in December rose by 50,000, missing expectations of a 60,000 gain, while the unemployment rate eased to 4.4%, below forecasts of 4.5%.

“Payrolls are showing us a poor job creation environment. Potentially more (geopolitical tension), somewhat higher oil prices, which are inflationary, uncertainty, and an easing Fed — all a combination for precious metals,” said Bart Melek, global head of commodity strategy at TD Securities.

Market participants continued to factor in at least two Federal Reserve rate cuts this year, a backdrop historically favorable for gold.

Geopolitical tensions remained elevated amid intensifying unrest in Iran, continued fighting in Russia’s war in Ukraine, the US capture of Venezuela’s President Nicolas Maduro, and Washington’s renewed signals of taking control of Greenland.

Metals Focus projected gold prices could hit fresh record highs above USD 5,000 in 2026, citing de-dollarization trends and geopolitical risks.

Retail demand for gold in India remained subdued due to elevated prices, while gold premiums in China widened.

Meanwhile, uncertainty over tariffs persisted, as the US Supreme Court is not expected to issue a ruling on Friday in a major case testing the legality of President Donald Trump’s sweeping global tariffs, with decisions now expected on January 14.

Spot silver gained 3.5% to USD 79.56 per ounce and was on track to log an about 9.7% weekly rise.

Spot platinum rose 0.8% to USD 2,284.50 per ounce. Palladium climbed 1.6% to USD 1,814.93 per ounce. Both metals were set for weekly gains as well.

Bank of America raised its 2026 average platinum and palladium price forecasts, citing dislocations from trade disputes amid physical market tightness, while China’s imports add support.

(Reporting by Anmol Choubey in Bengaluru; Editing by Nia Williams)

Earnings start, inflation data pose tests for resilient US stocks

NEW YORK – US stocks have kicked off 2026 on a strong note, but could face turbulence in the coming days with the start of corporate earnings season, fresh inflation data, and rising geopolitical uncertainty.

The S&P 500 is up nearly 2% already in January, on the heels of the benchmark index in 2025 closing out its third straight year of double-digit percentage gains. Stocks jumped on Friday after mixed jobs data that saw traders maintain expectations for more interest rate cuts this year.

The market’s recent strength has defied an increasingly volatile geopolitical landscape. After a US military operation that seized Venezuela’s leader, officials in President Donald Trump’s administration spoke of acquiring Greenland, including the potential use of the military.

Investors point to a strong outlook for corporate profits, easing monetary policy and coming fiscal stimulus as supports for a bull market that is in its fourth year.

“On balance for this year, the foundation for the market is solid,” said Michael Arone, chief investment strategist at State Street Investment Management.

“As we’re starting January, the market may be underappreciating some of the events on the horizon that could likely produce higher volatility,” Arone said. “It just seems a little too quiet.”

While geopolitical events have boosted the safe-haven appeal of gold, stocks have largely shrugged off the uncertainty, said Matthew Miskin, co-chief investment strategist at Manulife John Hancock Investments. The Cboe Volatility Index on Friday was not far above its low point from 2025.

“The market’s a bit numb to it,” Miskin said. “But this is a time where everything is priced near perfection, and it’s a time where you can take out some insurance or think about some defensive options just in case another geopolitical event hits the headlines.”

BANKS BEGIN Q4 RESULTS, CPI ON DECK

Major banks kick off fourth-quarter earnings season in the coming week, with strong profit growth this year a crucial source of optimism for stock investors. Analysts expect that overall earnings from S&P 500 companies climbed 13% in 2025, and they estimate a further rise of over 15% in 2026, according to LSEG IBES.

JPMorgan Chase, the largest US lender, reports on Tuesday, with Citigroup, Bank of America and Goldman Sachs among those reporting later in the week. Financial sector earnings are expected to have climbed about 7% in the fourth quarter from the year-earlier period.

Jack Janasiewicz, portfolio manager at Natixis Investment Managers, will be looking to bank results for insight into the health of the consumer, such as on credit card payment defaults, with consumer spending accounting for more than two-thirds of economic activity.

“The banks are going to be telling you something that is going to be pretty important because they’re on the front lines,” Janasiewicz said.

Investors have been struggling to get a full picture of the economy because the 43-day government shutdown late last year delayed or canceled key reports, with data flow now returning to normal.

That could raise the stakes for Tuesday’s release of December’s Consumer Price Index, closely followed for inflation trends. It will be one of the last key releases before the Federal Reserve’s next monetary policy meeting at the end of January.

The US central bank lowered interest rates in each of its last three meetings of 2025 in response to a weakening labor market, but investors are unsure when it might cut further.

Fed easing is adding “a sense of calm to risk markets,” said Nanette Abuhoff Jacobson, global investment strategist at Hartford Funds.

“All the inflation numbers are going to be critical to what Fed policy is going to look like,” Abuhoff Jacobson said. “If the mosaic is suggesting that inflation is inching higher, then there are going to be questions about whether the Fed is going to ease in 2026 or how much they can ease.”

(Reporting by Lewis Krauskopf; Editing by David Gregorio)

Oil prices gain on US inventory draw, Venezuela in focus

TOKYO – Oil prices gained slightly on Thursday, rebounding from two days of declines, as a larger-than-expected draw in US crude inventories provided some impetus for investors to buy futures while they monitor developments in Venezuela.

Brent crude futures climbed 38 cents, or 0.6%, to USD 60.34 a barrel by 0104 GMT, while US West Texas Intermediate crude was at USD 56.36 a barrel, up 37 cents, or 0.7%.

Both benchmarks fell more than 1% for a second day on Wednesday with market participants expecting ample global supply this year, including analysts at Morgan Stanley, who estimate a surplus of as much as 3 million barrels per day in the first half of 2026.

The declines led some traders to take an opportunity to buy futures on Thursday, said Mitsuru Muraishi, an analyst at Fujitomi Securities.

“Pullback buying has nudged prices slightly higher, but persistent oversupply concerns are capping upside momentum. While markets are watching developments in Venezuela, the downward trend is likely to continue for now,” he said, forecasting that WTI will likely fall below USD 54.

US crude stocks dropped by 3.8 million barrels to 419.1 million barrels in the week ended January 2, the Energy Information Administration said, compared with analysts’ expectations in a Reuters poll for a 447,000-barrel rise.

The US needs to control Venezuela’s oil sales and revenue indefinitely to stabilize that country’s economy, rebuild its oil sector and ensure it acts in America’s interests, top US officials said on Wednesday.

Oil producer Chevron is in talks with the US government to expand a key license to operate in Venezuela so it can increase crude exports to its own refineries and sell to other buyers, four sources close to the negotiations said on Wednesday.

The US also seized two Venezuela-linked oil tankers in the Atlantic Ocean on Wednesday, one sailing under Russia’s flag, as part of US President Donald Trump’s aggressive push to dictate oil flows in the Americas and compel Venezuela’s socialist government to become an ally.

On Tuesday, Washington announced a deal with Caracas to get access to up to USD 2 billion worth of Venezuelan crude. Venezuela will be “turning over” between 30 million and 50 million barrels of “sanctioned oil” to the US, Trump wrote in a social media post on Tuesday.

The deal initially could require the rerouting of cargoes that were bound for China, sources told Reuters.

Chinese independent refiners that consume much of the country’s Venezuelan imports could switch to Iranian oil to make up the shortfall.

(Reporting by Yuka Obayashi; Editing by Christian Schmollinger)

Dollar steady, range-bound as investors assess US labor data

NEW YORK – The dollar was steady against major currencies, including the yen and euro, on Wednesday amid market positioning around several US labor market data releases this week.

US job openings fell more than expected in November while hiring eased, according to Labor Department data, suggesting demand for labor continued to ebb.

Institute for Supply Management data showed that US services sector activity unexpectedly picked up in December, while private payrolls rebounded less than expected in December, according to the ADP’s national employment report.

The more comprehensive and closely watched nonfarm payrolls report is due on Friday.

The dollar was up slightly by 0.24% at 0.797 against the Swiss franc and edged 0.08% higher to 156.75 against the Japanese yen.

“The price action on the dollar right now is more tactical than anything else because without firm policy updates, there’s going to be a fade on the move that normally happens,” said Olivier Bellemare, senior options dealer at Monex Canada.

“The focus will be on the employment numbers at the end of the week, and the reason is that the market is still looking for signs of inflation as a more sticky indicator for directional positioning on the dollar against its peers.”

Oil prices fell on Wednesday and China denounced the US as a bully after President Donald Trump’s administration said it had persuaded Venezuela to divert supplies away from Beijing.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.07% to 98.68.

JAPAN-CHINA TENSIONS UNDER SPOTLIGHT

The euro edged down after falling the previous day, as German inflation eased more than expected in December, spurring traders to slightly scale back bets on a rate hike in early 2027.

Markets since last summer have been pricing policy rates to remain stable through 2026, while expecting the European Central Bank to tighten policy in 2027 as inflationary pressures build from German fiscal stimulus.

The single currency was down 0.04% at USD 1.1682, after falling 0.28% on Tuesday.

Also on traders’ radar: China on Tuesday banned exports of dual-use items to Japan that can be used for military purposes, marking Beijing’s latest reaction to an early November remark by Japanese Prime Minister Sanae Takaichi about Taiwan.

The move did not affect the foreign exchange market, strategists said, although it weighed on Japanese stock markets which lost 1% on Wednesday.

Some analysts said the rise in tensions between China and Japan could give the Bank of Japan a reason for caution in hiking rates again.

The Aussie dollar hit its highest since October 2024 at USD 0.6766, as a mixed inflation report kept alive the prospect of a near-term hike in interest rates. The New Zealand dollar was last down 0.14% at USD 0.5776.

“We think a risk-on macro backdrop in 2026, alongside a range of regional macro and valuation tailwinds, should support a constructive backdrop for both AUD and NZD versus the dollar this year,” Goldman Sachs analysts, led by Stuart Jenkins, said in an investor note.

(Reporting by Chibuike Oguh in New York; Editing by Mark Heinrich and Edmund Klamann)

Soft US dollar outlook set to linger along with Fed independence worries

BENGALURU – The outlook for the US dollar among currency strategists polled by Reuters remains bearish at the start of 2026, with a modest decline expected by year-end based on persistent concerns around Federal Reserve independence and the possibility of lower interest rates.

The greenback fell almost 10% against a basket of major currencies last year, its weakest performance since 2017. Investors weighed risks from the highest US tariffs since the Great Depression, job market softness, and several trillion dollars of additional US borrowing planned over the coming years.

Markets have also focused on questions around the central bank’s autonomy and who will succeed Fed Chair Jerome Powell, whose term ends in May, with an announcement expected imminently.

Over the past month, there has been little to change the prevailing view among foreign exchange forecasters in a January 5-7 Reuters poll that the dollar’s downtrend will persist.

Survey medians, broadly unchanged from December, showed the euro rising about 1% per quarter, reaching USD 1.19 by mid-year and USD 1.20 by year-end. Only 17%, 12 of the 71 participants, predicted it would weaken from current levels by end-2026.

“The White House wants to take control of monetary policy and set the direction of rates – and that is toward more easing,” said Vincent Reinhart, chief economist at BNY Investments and a former Fed staffer. He added that the dollar would move sideways in the near-term, with little happening to monetary policy until the new chair is chosen.

“Over the medium to longer term, there are lots of reasons the dollar depreciates. The Fed eases more than other central banks, the US is seen as a less attractive safe haven,n and the growth differential of the US with the rest of the major trading partners narrows.”

The Fed has already cut the federal funds rate three times since September to a range of 3.50%-3.75%, based in large part on increased worries about a weakening job market. The US central bank’s own projections show one more reduction this year.

Still, policymakers have signaled a pause to assess incoming data before easing further, underscoring divisions between officials wary of stoking inflation, which is still above the 2% target, and those worried about further job losses without lower rates.

Paul Mackel, global head of FX research at HSBC, said the impact from the Trump administration’s fiscal expansion “is already starting to kick in” and the effects of last year’s tariffs, which added huge costs to US companies importing materials and goods from abroad, are “still materializing.”

“I don’t think we can confidently say the inflation story is done and dusted and that it’s only going to soften from here,” Mackel said.

“But the Fed effectively still has an easing bias…so we’re in a soft dollar world that’s likely to persist in the months to come.”

Currency traders, who have maintained a net-short dollar position for much of the past year, appear set to continue their stance in the near term.

Nearly 90% of strategists polled, 35 of 40, said net-short dollar positions would remain the same or increase by end-January.

Interest rate futures are pricing in at least two Fed rate cuts this year, with scope for further easing if policy decisions come under greater political influence.

That risk, several analysts said, was closely tied to developments around the central bank’s leadership, including the legality of President Donald Trump’s attempts to remove Fed governor Lisa Cook.

“If Trump is successful in removing Cook, there’s going to be more outflows from US assets, particularly fixed income and AI,” said Erik Nelson, head of G10 FX strategy at Wells Fargo, the most accurate forecaster for major currencies in Reuters polls last year, according to LSEG StarMine calculations.

“We’d also potentially see the risk of more (of the board) being removed and implicit pressure on the Fed increasing as a result,” he added, noting that would probably bring the dollar weakness trend forward and make it a more acute move.

(Reporting by Sarupya Ganguly; Polling by Indradip Ghosh and Renusri K; Editing by Ross Finley and Kirsten Donovan)

Gold falls more than 1% as investors lock in profits

Gold prices fell more than 1% on Wednesday as investors booked profits after a recent rally, though it pared some losses after weaker-than-expected US jobs data bolstered bets of Federal Reserve rate cuts.

Spot gold dropped 0.9% to USD 4,445.32 per ounce, as of 1:36 p.m. ET (1836 GMT). Prices fell as much as 1.7% to USD 4,422.89 earlier in the session.

US gold futures for February delivery settled 0.7% lower at USD 4,462.50.

“We’re viewing today’s pullback as general profit taking after that recent surge,” said David Meger, director of metals trading at High Ridge Futures.

But softer employment data continues to support the case for Fed easing, which has underpinned gold prices recently, Meger added.

US job openings fell more than expected in November after rising marginally in October, while a separate ADP report showed that private payrolls increased less than expected in December.

Markets anticipate 61 basis points of rate cuts this year, according to data compiled by LSEG. Focus now turns to Friday’s nonfarm payrolls report.

Meanwhile, geopolitical uncertainty persisted following Venezuelan President Nicolas Maduro’s capture over the weekend, with US President Donald Trump announcing plans on Tuesday to refine and sell Venezuelan crude, while the White House separately confirmed discussions about acquiring Greenland, including potential military involvement.

Elsewhere, China’s central bank extended its gold-buying streak to a 14th straight month in December, according to official data.

The data from China “continues to show strong demand that we’re seeing from Asia … and again, one more reason why we’ve seen this recent push to the upside,” Meger said.

Gold, a non-yielding safe-haven asset, tends to benefit in low-rate environments and during times of uncertainty.

Among other metals, spot silver lost 4.1% to USD 77.93 per ounce.

HSBC raised its 2026 silver price forecast to USD 68.25 but warned of volatility as supply eases, while Goldman Sachs sees thin London inventories driving sharp swings and squeeze‑led rallies that may later reverse.

Spot platinum dropped 6.5% to USD 2,285.75, while palladium traded 5.2% lower at USD 1,727.40.

(Reporting by Anmol Choubey in Bengaluru; Editing by Sahal Muhammed, Varun H K, and Alan Barona)

Dollar stabilizes as Venezuela fears subside, risk-on mood grows

SINGAPORE – The US dollar steadied near a two-week high as trading commenced in Asia on Tuesday, as market jitters from US military action in Venezuela eased and dovish comments from Fed officials spurred risk-taking on Wall Street.

The dollar, which measures its strength against a basket of six currencies, was last trading at 98.36, nudging up 0.04% after snapping a four-day winning streak on Monday.

“The market isn’t really concerned about what’s happening in the geopolitical front, at least in the near term,” said Rodrigo Catril, currency strategist at National Australia Bank in Sydney.

That environment “lessens the appeal for safe havens and we’ve seen the US dollar on the backfoot,” he added.

Financial markets were volatile after the weekend’s dramatic ouster of Venezuelan President Nicolas Maduro, which sparked volatility in commodity markets. Maduro pleaded not guilty to narcotics charges in a Manhattan federal court on Monday.

The Australian dollar, which is sensitive to commodity prices, was last down 0.1% at USD 0.6713, edging back from the top of the trading channel it has sat in for the past two weeks after copper prices hit a record high. The New Zealand dollar was last off 0.1% at USD 0.5784.

Against the yen, the dollar was last up 0.2% at 156.72 yen.

The dollar was pressured on Monday by dovish comments from Minneapolis Federal Reserve President Neel Kashkari, a voter on the central bank’s rate-setting committee this year, who told CNBC he sees a risk that the jobless rate could ‘pop’ higher.

Expectations of policy easing edged up after his remarks, though Fed funds futures are still pricing an implied 82.8% probability that interest rates will remain on hold at the US central bank’s next meeting on January 27-28, compared to an 83.4% chance on Friday, according to the CME Group’s FedWatch tool.

The greenback felt further pressure as US manufacturing activity contracted more than expected in December, falling to a 14-month low.

“The modest decline in the ISM Manufacturing Index in December confirms that the sector was struggling for momentum around the turn of the year, but we doubt that this will be enough to prevent overall GDP from expanding at a solid pace in the coming quarters,” Capital Economics wrote in a research report.

Against the Chinese yuan trading offshore in Hong Kong, the dollar was last flat at 6.983 yuan.

The euro was 0.1% lower at USD 1.1713, while the British pound weakened 0.1% to USD 1.3533.

Bitcoin edged 0.2% lower to USD 93,900.82, while ether slipped 0.4% to USD 3,226.50.

(Reporting by Gregor Stuart Hunter; Editing by Jacqueline Wong)

Stocks, energy shares, oil jump after US strikes Venezuela

NEW YORK – Major stock indexes and oil prices gained on Monday, with energy shares climbing and investors reacting mostly calmly to potential market ramifications after a US military strike that captured Venezuelan President Nicolas Maduro.

The Dow Jones Industrial Average hit a record high. The S&P 500 energy index rose to its highest since March 2025, with shares of Exxon Mobil up 2.2% and Chevron up 5.1%. Financial shares also rose, while an S&P index of defense shares was up more than 1%.

After the dramatic events in Venezuela over the weekend, US President Donald Trump said he was putting the South American nation under temporary American control and that he could order another strike if Venezuela did not cooperate with US efforts to open up its oil industry and stop drug trafficking. He also threatened military action in Colombia and Mexico.

Trump is planning to meet with executives from US oil companies later this week to discuss boosting Venezuelan oil production, Reuters reported, citing a source familiar with the matter.

Oil prices were also higher as traders assessed the possible impact on crude flows from Venezuela, home of the biggest global oil reserves.

“It’s a reasonable reaction from the markets to largely ignore the geopolitics around Venezuela, with the exception of a handful of oil companies, which are spiking,” said Oliver Pursche, senior vice president and advisor at Wealthspire Advisors in Westport, Connecticut.

“Venezuela’s GDP has virtually no impact on global GDP… so the market should ignore it,” he said, noting that US economic data this week will be key to the outlook for interest rates.

The Dow Jones Industrial Average rose 594.79 points, or 1.23%, to 48,977.18, the S&P 500 rose 43.58 points, or 0.64%, to 6,902.05, and the Nasdaq Composite rose 160.19 points, or 0.69%, to 23,395.82.

MSCI’s gauge of stocks across the globe rose 8.38 points, or 0.82%, to 1,028.02.

The pan-European STOXX 600 index rose 0.94%. Emerging market stocks rose 21.63 points, or 1.51%, to 1,451.11.

Brent crude futures rose USD 1.01 to settle at USD 61.76 a barrel, while US West Texas Intermediate crude gained USD 1 to settle at USD 58.32.

US MILITARY ACTION SPURS SAFE-HAVEN DEMAND

Gold rose to a one-week high on bullion’s safe-haven appeal.

Spot gold hit its highest level since December 29. US gold futures for February delivery gained 2.8% to settle at USD 4,451.5 an ounce.

The dollar index was down slightly after hitting a near-four-week high against a range of currencies following a weak December, with traders focused on this week’s raft of key economic data and largely shrugging off events in Venezuela.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.24% to 98.32.

Traders readied for new data that should offer fresh clues on the state of the US economy and the likely path of Federal Reserve policy, culminating in the release of the jobs report for December on Friday.

US Treasury yields eased. The yield on benchmark US 10-year notes fell 2.4 basis points to 4.165%, from 4.189% late on Friday.

(Reporting by Caroline Valetkevitch in New York; Additional reporting by Lawrence White in London; Editing by David Goodman, Chizu Nomiyama and Jamie Freed)

Dow hits record, energy stocks end higher after US strikes Venezuela

Wall Street ended higher on Monday, with surging financial shares helping lift the Dow Jones Industrial Average to an all-time peak, while energy firms jumped after a US military strike captured Venezuelan President Nicolas Maduro.

Investors bet Washington’s move against Venezuela’s leadership would allow US firms access to the world’s largest oil reserves. President Donald Trump’s administration plans to meet with executives from US oil companies this week to discuss boosting Venezuelan production.

The S&P 500 energy index rose 2.7% to its highest since March 2025, with heavyweights Exxon Mobil and Chevron both surging.

Weapons manufacturers also advanced after Washington’s military action. Lockheed Martin and General Dynamics climbed, while the S&P 500 aerospace and defense index rose to a record high.

“Energy stocks are really benefiting from the expectation that President Trump is intending to send them in to do more investment in Venezuela and ultimately make more money for themselves,” said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle.

“The lack of permanent boots on the ground, the fact that we’re not permanently engaged, means the broader equity markets are able to set aside what might have been fears of a prolonged engagement,” Haworth said.

Tesla climbed 3.1% after seven straight sessions of losses. NVIDIA dipped 0.4%, and Apple declined 1.4%.

The S&P 500 climbed 0.64% to end the session at 6,902.05 points.

The Nasdaq gained 0.69% to 23,395.82 points, while the Dow rose 1.23% to 48,977.18 points. Volume on US exchanges was heavy, with 19.1 billion shares traded, far exceeding the average of 15.9 billion shares over the previous 20 sessions.

The S&P 500 financials index jumped 2.2% as investors looked to upcoming quarterly reports. Analysts on average see S&P 500 financial companies growing their earnings 6.7% year-over-year in the December quarter.

Goldman Sachs and JPMorgan Chase rose more than 3% and hit record highs.

“The mood has been favoring financial stocks in recent days, and as people look beyond tech, this is a sector many are choosing to look toward,” said Steve Sosnick, chief market analyst at Interactive Brokers.

Wall Street’s main indexes posted double-digit gains in 2025 for the third consecutive year, a run last seen in 2021.

Data showed US manufacturing contracted more than expected in December, extending a 10-month slump.

The spotlight will now be on the monthly nonfarm payrolls on Friday, which could influence the Federal Reserve’s monetary policy in 2026.

Markets are pricing in about 60 basis points of interest rate easing this year, according to LSEG.

Cryptocurrency-linked shares advanced as bitcoin BTC= hit a more than three-week high. Strategy, formerly MicroStrategy, climbed almost 5% and Coinbase rallied 7.8%. Goldman Sachs upgraded Coinbase to “buy” from “neutral”.

Advancing issues outnumbered falling ones within the S&P 500 by a 2.1-to-one ratio.

The S&P 500 posted 60 new highs and 11 new lows; the Nasdaq recorded 107 new highs and 49 new lows.

(Reporting by Purvi Agarwal and Nikhil Sharma in Bengaluru, and by Noel Randewich in San Francisco; Editing by Shinjini Ganguli and David Gregorio)

Gold hits record high on safe-haven demand; silver climbs to new peak

Gold touched a record high on Tuesday, coming within a whisker of breaching the key USD 4,500 per-ounce level, as investors flocked to the safe haven on US-Venezuela tensions, while silver also rallied to an all-time peak.

Spot gold rose 0.9% to USD 4,486.55 per ounce by 0753 GMT, after hitting a record USD 4,497.55 earlier in the session. US gold futures for February delivery gained 1.1% to USD 4,519.20.

“US-Venezuela tensions are keeping gold on the radar for investors as an uncertainty hedge,” said Tim Waterer, chief market analyst at KCM Trade, adding that gold had surged this week as part of a broader positioning shift with US interest rates projected to ease further.

Waterer said buyers continued to see precious metals as an effective way to diversify portfolios and preserve value, adding that “I don’t think we are at the high watermark yet for gold or silver.”

US President Donald Trump last week announced a “blockade” of all oil tankers under sanctions entering and leaving Venezuela.

Further support for gold came from reports that Trump could name a new Federal Reserve Chair by early January, with markets pricing in two rate cuts for next year amid expectations of a more dovish policy stance.

Bullion, a classic refuge in times of geopolitical and economic unease, has surged more than 70% so far this year, riding a potent mix of geopolitical risks, rate-cut bets, central bank buying, de-dollarization, and renewed exchange-traded fund inflows.

“With year-end approaching, thinner liquidity conditions could amplify price swings,” said Frank Walbaum, a market analyst at trading and investment platform Naga, noting that gold might remain especially sensitive to geopolitical headlines and shifts in rate expectations.

Spot silver advanced 0.8% to USD 69.56 per ounce after touching a record high of USD 69.98, with its year-to-date gains topping 141% and outpacing gold on supply deficits, industrial demand, and investment inflows.

Some consolidation was possible over the festive period as liquidity thinned, said Michael Brown, a senior strategist at Pepperstone.

He, however, said the rally should resume in earnest once volumes returned, with the USD 5,000 level a natural target for gold next year and the USD 75 mark a longer-term objective for silver.

Spot platinum jumped 3.1% to USD 2,185.05, its highest in more than 17 years, while palladium rose 2.7% to a three-year high of USD 1,806.25, tracking strength in gold and silver.

(Reporting by Sherin Elizabeth Varghese and Arunima Kumar in Bengaluru; Editing by Rashmi Aich and Subhranshu Sahu)

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