Gold Holds Firm as Investors Shift Focus from Venezuela Concerns to Upcoming US Economic Data

Gold Holds Steady as Markets Shift Focus to US Economic Data

Gold prices remained stable as investors shifted their attention from the recent developments in Venezuela to a packed schedule of upcoming US economic reports. Meanwhile, silver extended its rally for a third consecutive session.

Spot gold hovered around $4,450 per ounce, following a 2.7% surge in the previous trading day after Venezuelan leader Nicolás Maduro was apprehended. The political situation in Venezuela remains uncertain, especially after President Donald Trump announced US intentions to oversee the country, with Delcy Rodríguez stepping in as interim president.

Market participants are now closely watching a series of US economic indicators set to be released this week, with the December employment report on Friday taking center stage. Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, remarked on Monday that interest rates may be nearing a neutral stance for the US economy, suggesting that forthcoming data will play a key role in shaping the central bank’s next moves.

According to Dilin Wu, a strategist at Pepperstone Group Ltd., the recent turmoil in Venezuela provided only a temporary lift to gold’s appeal as a safe-haven asset. Wu noted that unless tensions in the Caribbean escalate further, the impact on gold may be short-lived.

Gold recently achieved its strongest annual performance since 1979, repeatedly setting new record highs last year. This impressive run was fueled by robust central bank purchases and increased inflows into gold-backed exchange-traded funds. Additionally, three consecutive interest rate cuts by the Federal Reserve provided further support for precious metals, which do not generate interest income.

Looking ahead to 2026, Fawad Razaqzada, an analyst at City Index Ltd., observed that the market outlook is becoming increasingly nuanced. He emphasized that factors such as central bank buying, global bond yield trends, and the extent of remaining monetary easing will be more influential than ever.

Gold reached a record peak of $4,549.92 per ounce on December 26. Several major banks anticipate further gains this year, particularly as the Federal Reserve is expected to implement additional rate cuts and President Trump continues to reshape the central bank’s leadership. Goldman Sachs Group Inc. recently projected that gold could climb to $4,900 per ounce, with the potential for even higher prices.

In the short term, however, there are concerns that widespread rebalancing of commodity indexes could weigh on prices. The exceptional rallies in gold and silver may prompt passive investment funds to sell some holdings to align with updated index weightings, a process set to begin on Thursday.

Silver advanced as much as 3.6% on Tuesday. In China, LONGi Green Energy Technology Co. announced plans to replace silver with base metals in its solar cell production, as the solar industry seeks to manage the rising cost of silver.

As of 2:20 p.m. in Singapore, gold edged up 0.2% to $4,456.80 per ounce. Silver gained 3.1% to reach $78.96 per ounce. Platinum increased by 2.3%, while palladium rose 1.6%. The Bloomberg Dollar Spot Index, which measures the strength of the US dollar, slipped by 0.1%.

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