WASHINGTON (dpa-AFX) - Gold prices held near record highs on Friday as a weaker dollar and rising geopolitical tensions lifted haven demand for the precious metal.
Spot gold was up 0.9 percent at $4,520.21 per ounce after having hit a fresh record at $4,531.24 per ounce earlier, driven by U.S. dollar weakness, rising tensions between the United States and Venezuela, and expectations for two Federal Reserve rate cuts by the end of 2026. U.S. gold futures were up a little over 1 percent at $4,549.15.
The U.S. dollar was poised for its biggest annual drop since 2017, driven by U.S. economic uncertainty and Fed rate cut expectations.
Traders are currently pricing in at least two Fed rate cuts for 2026 amid policy uncertainty.
On the geopolitical front, tensions are rising on multiple fronts. As the U.S. stepped up pressure on President Nicolas Maduro's government, Venezuela has accused the United States of the 'greatest extortion' at an emergency session of the UN Security Council in New York.
The White House has reportedly ordered the U.S. military to focus almost exclusively on enforcing a 'quarantine' of Venezuelan oil for at least the next two months.
Separately, the U.S. said it carried out a major strike in Nigeria, which is battling multiple armed groups. The action had been coordinated with the authorities in the West African country, the U.S. military said.
As markets move toward 2026, economist and long-time Bitcoin critic Peter Schiff has warned that gold will replace the U.S. dollar as a global reserve asset.
He issued a stern warning about the impending vulnerability of the U.S. dollar, urging investors to prepare for a 'historic economic collapse'.
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