Introduction
On Tuesday, gold prices extended their gains, driven by the demand for safe-haven assets following the US capture of Venezuela’s president, which heightened global tensions. Investors awaited the US non-farm payroll data to gauge insights into the Federal Reserve’s interest rate policy.
Gold Performance
Spot gold rose by 1.04% to $4,495.09 per ounce, nearing its historical peak of $4,549.71 reached on December 24. US gold futures for February delivery climbed 1.21% and closed at $4,505.75 per ounce.
Jim Wyckoff, senior analyst at Kitco Metals, stated, “Precious metals traders see more risks on the horizon than stock and bond traders do currently.” He added that the US intervention in Venezuela over the weekend has continued to drive demand for gold and silver as safe-haven assets.
Silver Performance
Spot silver, which reached an all-time high of $83.62 per ounce on December 29, increased by 6.06% to $81.25.
Platinum and Palladium Performance
Spot platinum rose by 7.2% to $2,435.20 per ounce, while palladium climbed by 5.9% to $1,821.68 per ounce.
Market Anticipation
Market participants are also awaiting the monthly US employment report due on Friday, which is expected to show an addition of 60,000 jobs in December—a slight decrease from the previous month’s 64,000.
Copper Performance
The three-month copper reference price on the London Metal Exchange (LME) gained 1.47% to $13,236.33 per tonne after rising 3.1% to a record high of $13,387.5.
Copper inventories on the LME have dropped to 142,550 tonnes, their lowest level since November 17. Meanwhile, inventories on the Comex exchange continue to rise, tightening supply outside of the US. The most actively traded Comex contract increased by 1.49% to $6.065 per pound, or approximately $13,338 per tonne.
Other Metals Performance
Nickel on the LME added 10% to $18,735 per tonne after reaching its highest level since June 7, 2024, due to Indonesia’s plans to cut mine production. Tin surged 6.9% to $45,485, its highest level since March 2022.
Key Questions and Answers
- What drove the rise in gold prices? The capture of Venezuela’s president by the US fueled global tensions, prompting investors to seek safe-haven assets like gold.
- What other metals experienced price increases? Silver, platinum, palladium, copper, nickel, and tin all saw price gains on the mentioned day.
- Why are investors awaiting the US non-farm payroll data? This report will provide insights into the Federal Reserve’s interest rate policy.
- What are the expected job additions in December’s US employment report? The report is anticipated to show an addition of 60,000 jobs in December, a slight decrease from the previous month.
- How have copper inventories been affected? Copper inventories on the LME have decreased to their lowest level since November 17, while Comex inventories continue to rise.
