WASHINGTON (dpa-AFX) - Gold prices moved higher on Tuesday, extending yesterday's gains amid continuing geopolitical conflicts and sustained U.S. Federal Reserve rate cut expectations that drove demand for the yellow metal.
Front Month Comex Gold for January delivery climbed by $45.30 (or 1.02%) to $4,482.20 per troy ounce.
Front Month Comex Silver for January delivery skyrocketed by $4.3660 (or 5.73%) to $80.530 per troy ounce.
Notably, this is a new record high for silver prices, which have increased for three consecutive sessions.
In the U.S. today, the S&P Global Composite PMI recorded 52.7 in December (the lowest in 8 months), while the S&P Global US Services PMI fell to 52.5 in December.
Last Saturday, in a swift and drastic military offensive conducted by the U.S. military on Venezuelan soil, Venezuelan President Nicolas Maduro and his wife were captured and brought to the U.S. to be presented at a New York city courthouse to face drug and weapons charges. During the hearing, the couple pleaded 'not guilty.'
Maduro's ally Delcy Rodriguez is currently serving as Venezuela's acting president.
U.S. President Donald Trump ,who ordered the operation (termed 'Absolute Resolve'), remarked that in the near-term the U.S. would be 'running' Venezuela and cautioned the acting regime to cooperate or face a broader military intervention.
Trump's actions follow his months-long accusations against Maduro's regime of promoting narco-and-drug trafficking via U.S. borders into the U.S., causing a huge social crisis. Not only Maduro has refuted Trump's claims, but he counter-alleged that the U.S. wants the rich oil wealth of Venezuela by force.
Trump hinted at a similar operation in Colombia and Mexico if those countries fail to take on their drug cartels. In response, Colombian President Gustavo Petro stated that he would 'take up arms' against Trump.
These developments have pushed investors towards gold's safe-haven status.
In 2025, after breaking several record highs, gold already gained above 64%.
In the ongoing Russia-Ukraine war, Russia conducted five missile strikes on energy infrastructure located in Kharkiv, Ukraine.
An Ukrainian drone attack triggered a fire in Yelets, Lipetsk region, Russia.
Today in Paris, the allies of Ukraine (Coalition of the Willing) are reviewing the U.S. scripted peace proposal to end the Russia-Ukraine war. So far, there has been no breakthrough development in the peace talks.
Yesterday, in an interview with CNBC, President of the Minneapolis Federal Reserve Bank Neel Kashkari observed that inflation is elevated and added that the Federal Reserve is nearing a 'neutral interest rate.' However, Kashkari warned of a potential increase in the unemployment rate.
Technically, a neutral rate indicates a scenario where benchmark interest neither restrains the economic growth nor stimulates it.
The Fed brought down rates to a range of 3.50% to 3.75% in December.
Yesterday, the Institute for Supply Management's Manufacturing PMI data revealed a fall for the third consecutive month to 47.9 in December 2025. For the same period, the employment gauge inched higher to 44.9, and the new orders index increased to 47.7 in December from 47.4 in November.
The economic projections released in December by the Fed showed a divided Fed committee with seven projecting 'no cuts' in 2026, eight predicting 'two or more,' and four supporting only 'one cut.'
Currently, the CME Group's FedWatch Tool is indicating that investors are betting on just a 16.1% chance of a quarter-point interest rate cut athe Fed's the upcoming January 27-28 meeting.
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