Gold rises amid rising interest rate cuts and Venezuela”s unrest
Gold prices rose on Tuesday, their highest level in a week after statements by US Federal Reserve officials referring to monetary easing reinforced bets on interest rate cuts, and tensions in Venezuela increased demand for safe-haven assets.
The price of gold in spot transactions rose 0.4% to $4,465.32 per ounce, after jumping approximately 3% in the previous session.
Gold had an all-time high of $4,549.71 on December 26, ending the year up 64%, the best annual performance since 1979.
U.S. gold futures for February delivery rose 0.3% to $4,465.70.
Minneapolis Federal Reserve Chairman Neil Kashkari said on Monday that inflation is slowly declining, but there is a risk of sudden unemployment, increasing the likelihood of cutting the interest rate.
Investors are currently expecting at least two U.S. interest rate cuts this year, while awaiting nonfarm job data due on Friday to get more indications of the path of monetary policy that the US central bank may pursue.
Venezuela's ousted President Nicolas Maduro on Monday's acquittal of drug-related charges, after his arrest worried world leaders.
The United States arrested Maduro on Saturday, in an operation that is said to have killed civilians, while U.S. President Donald Trump said Washington would take charge of the South American country.
Non-return assets tend to recover in low interest rates and in times of geopolitical or economic instability.
For other precious metals, the price of silver in spot transactions rose 2.9% to $78.72 per ounce, after recording an all-time high of $83.62 on December 29.
The price of platinum in spot transactions rose 2.5% to $2,327.17 per ounce, after rising to an all-time high of $2,478.50 last Monday. He had jumped more than 5% earlier in the session to record his highest level in a week.
The price of palladium increased by 0.8% to $1,721.74 per ounce