Spot Gold settled just below a fresh all-time high of $4,550.15/oz., underpinned by geopolitical uncertainty and expectations of further policy easing by the Federal Reserve.
The safe-haven allure of the yellow metal has been heightened by mounting tensions between the US and Venezuela.
The US has deployed numbers of special-operations aircraft, troops as well as equipment to the Caribbean area this week, giving Washington additional options for potential military action in Venezuela, according to a report by the WSJ.
On the data front, moderating inflation and a cooling labor market have given the Fed more scope to lower interest rates.
FOMC policy makers signaled just one 25 bps rate cut for next year, while investors continue to expect two rate cuts of 25 basis points each.
Strong central bank buying, US tariff policies, potential rate cuts by the Federal Reserve, robust ETF inflows and geopolitical uncertainty have fueled Gold’s rally to a series of record highs this year.
Central banks are set to buy 850 tons of gold in 2025, compared to 1,089 tons in 2024, according to Metals Focus.
Physically-backed gold ETFs are on track for their most sizable inflow since 2020, attracting $82 billion so far in 2025, according to World Gold Council data.
Year-to-date, the yellow metal has surged 72.74%, set to register its best annual performance since 1979. Its weekly gain was 4.48%.
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