Gold prices rose on Tuesday, extending gains for a third straight session, as investors sought safety amid political upheaval in Venezuela and turned cautious ahead of key US economic data.
Spot gold climbed to $4,464.41 an ounce, up 0.41% on the day. Prices have gained 6.55% over the past month and are nearly 70% higher than a year ago, based on contracts for difference tracking the benchmark market.
The rally followed a sharp jump on Monday, when bullion surged 2.7% after the United States carried out a military operation in Venezuela that resulted in the capture of President Nicolas Maduro. US President Donald Trump said Washington would temporarily “run” the country and warned of a second strike if an interim government fails to meet US demands.
The developments heightened geopolitical uncertainty, prompting investors to increase allocations to gold, which is widely seen as a safe-haven asset during periods of political and economic stress.
Markets are also focused on upcoming US labor market data, particularly the December jobs report due on Friday, which could shape expectations for the Federal Reserve’s next policy steps.
On Monday, Minneapolis Federal Reserve President Neel Kashkari said inflation remains too high and warned that unemployment could rise, while adding that US interest rates may be approaching a neutral level.
Analysts said a combination of geopolitical risk and uncertainty over US monetary policy continues to support gold prices, even as markets remain sensitive to incoming economic data.
