Bullion rose more than 2% during intraday trading on Monday, breaking an all-time high amid growing geopolitical tensions and expectations that the Fed will continue to cut interest rates next year.
At 9 a.m., gold was at $4,479, up 0.80% since opening Tuesday in Asian trading.
Tensions in the Caribbean have escalated after U.S. President Donald Trump announced sanctions on oil tankers entering or leaving Venezuela.
Speculation about a U.S. military ground operation in the country remains high as Trump continues to pressure President Nicolas Maduro’s administration.
In addition, renewed tensions between Iran and Israel continue to push safe-haven assets like gold higher.
However, money markets have priced in 59 basis points of easing by the U.S. central bank for 2026, according to Capital Edge rate probabilities data.
The uncertain economic situation in the US has investors paying attention to the latest speeches from Fed officials.
Fed Governor Stephen Miran reaffirmed his dovish stance, in contrast to Cleveland Fed President Beth Hammack, who revealed that November Consumer Price Index (CPI) data came in a surprise, a sign that the decline in inflation may be temporary.
The US economy is expected to be busy heading into Tuesday following a trading week shortened by the Christmas holiday.
Traders will digest the four-week average of ADP Employment Change, the third-quarter Gross Domestic Product (GDP) growth figure in its early release, October Durable Goods Orders, as well as Industrial Production data for October and November.
