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06.01.202615:34:23UTC+00Gold Rises on Geopolitics and Rate-Cut Bets

Gold prices rose to $4,480 per ounce on Tuesday, building on Monday's 3% rally that brought prices to a one-week high. This upward trend reflects investors' inclination toward safe-haven assets in response to escalating geopolitical tensions and anticipated cuts in US interest rates. The recent surge in gold prices came in the wake of the US seizing control of Venezuelan President Maduro over the weekend. President Trump announced that the US would temporarily oversee Venezuela, adding that failure of the interim government to meet US demands might prompt further action. Meanwhile, Maduro pleaded not guilty to charges of narco-terrorism and possession of machine guns and destructive devices in a New York court on Monday. As investors look ahead to Friday's nonfarm payrolls report for insights into US monetary policy, FOMC member Neel Kashkari underlined that an increase in unemployment rates could elevate the probability of a rate cut, with market expectations leaning toward two such adjustments by the Federal Reserve this year. Gold reached an all-time high of $4,550 on December 26 and concluded 2025 with a remarkable 64% gain, marking its most robust annual performance since 1979.

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