Gold added to strong overnight gains to hover above $4,460 an ounce on Tuesday amid geopolitical tensions and expectations of Federal Reserve interest-rate cuts.
Spot gold inched up by 0.2 percent to $4,455.92 an ounce while U.S. gold futures were up 0.3 percent at $4,466.
The dollar index extended losses for a second day running on improved risk sentiment after U.S. President Donald Trump affirmed in an interview with NBC News that his country is not at war with Venezuela, home to the world’s largest oil reserves.
In an interview with NBC News, he projected a longer-term engagement, adding the country will not have new elections in the next 30 days.
“We have to fix the country first. You can’t have an election. There’s no way the people could even vote. It’s going to take a period of time. We have to nurse the country back to health,” Trump said.
Investors were also reacting to overnight data that showed U.S. manufacturing activity shrank in December by the most since 2024, boosting bets for more policy easing by the Federal Reserve.
As economic uncertainties mount, the December employment report, New York Fed’s December inflation expectations survey results, and November JOLTS figures on job openings, hires, quits, and layoffs will be in the spotlight this week.
Over the weekend, Philadelphia Fed President Anna Paulson signaled cautious optimism on the 2026 economic outlook and hinted that another rate cut is data dependent.
Minneapolis Fed President Neel Kashkari told CNBC on Monday that inflation remains elevated, and he thinks the central bank is nearing the point where it should stop lowering interest rates.
Fed Governor Michelle Bowman and Richmond Fed President Tom Barkin are due to speak later in the week.
Gold Hovers Near One-week High On Dollar Weakness
2026-01-06 09:46:07
