Geopolitical tension, triggered by the arrest of the Venezuelan president by the U.S., as well as forecasts of possible interest rate cuts in the country, are driving up demand for gold.
The spot price of gold bars rose by 0.3%, reaching $4,461.09 per ounce, after an increase of nearly 3% in the previous session. On December 26, the price hit a record high of $4,549.71 and ended 2022 with a 64% increase, marking the best performance since 1979.
As noted by ActivTrades analyst Ricardo Evangelista: "The rise in gold prices is supported by increased demand for safe-haven assets, driven by the escalation of the geopolitical situation in Venezuela and expectations of interest rate cuts from the Federal Reserve following disappointing data on the PMI index in the U.S. manufacturing sector."
