Gold Prices Climb on Geopolitical Risks and Rate-Cut Expectations

By Staff, Agencies

Gold prices recorded a strong rise last week, supported by increased safe-haven demand and growing market expectations that the United States will implement further interest rate cuts. Spot gold was last up 1.3 per cent, trading at $US4,509.20 per ounce.

The gains came amid heightened geopolitical uncertainty, including the US kidnapping of Venezuelan President Nicolás Maduro and ongoing unrest in Iran, developments that have fueled both short-term volatility and longer-term investor concern.

In such conditions, gold continues to attract demand as a traditional refuge during periods of political and economic instability.

Analysts at ANZ said the current environment is likely to encourage stronger central bank purchases and draw significant investor inflows into the precious metal. Gold is widely viewed as a reliable store of value when uncertainty rises.

Additional support for prices came from recent US non-farm payroll data, which showed that job creation in December fell short of expectations.

Following the release, traders increasingly priced in the possibility of two US interest rate cuts in 2026, according to ANZ. Expectations of lower rates tend to enhance gold’s appeal by reducing the attractiveness of yield-bearing assets, thereby boosting demand for bullion.