Gold Hits One-Week High as Fed Rate-Cut Bets and Venezuela Turmoil Drive Demand

Gold prices rose Tuesday to reach a one-week high, fueled by expectations of U.S. interest rate cuts and rising geopolitical tensions following the capture of Nicolás Maduro.

Spot gold climbed 0.5% to $4,469.96 per ounce by early morning, continuing a recovery after a nearly 3% jump in the previous session. The metal is coming off its best annual performance since 1979, having surged 64% last year and hitting a record high of $4,549.71 in late December.

Dovish remarks from Federal Reserve officials have bolstered investor confidence in upcoming rate cuts. Minneapolis Fed President Neel Kashkari noted Monday that while inflation is easing, the risk of a rising unemployment rate increases the likelihood of a policy shift.

"The calculus hasn't changed much, but the comments certainly didn't hurt," said Ilya Spivak, head of global macro at Tastylive. Investors are now looking toward Friday’s nonfarm payrolls report for definitive cues on the timing of rate reductions.

Global markets remain rattled by the U.S. capture of Nicolás Maduro. The move has caused friction between the U.S. and China, signaling a deepening trend of de-globalization. As non-yielding assets, gold and silver typically perform well during periods of intense geopolitical and economic uncertainty.

Silver also saw significant gains, rising 3.5% to $79.18 per ounce. Silver outpaced gold in 2025, ending the year with record-breaking annual gains of 147%. Meanwhile, spot platinum rose 2.8% to $2,334.25, hovering near the all-time high it reached last week.