Gold Hovers Near Record Amid Venezuela Tensions

Gold is trading close to its all-time high, with market participants closely monitoring escalating tensions in Venezuela and anticipating upcoming US inflation data. Platinum has recently surged dramatically, nearing $2,000 per ounce before experiencing a slight pullback.

These fluctuations occur as the Federal Reserve has implemented its third consecutive rate cut, a factor typically beneficial for precious metals. However, the Fed's future guidance on monetary easing remains somewhat ambiguous, with traders assigning a moderate probability to a January rate reduction.

The heightened geopolitical climate, particularly concerning Venezuela and increased US military presence, has bolstered the appeal of precious metals. Analysts note that supportive real yields, combined with ongoing geopolitical uncertainties and reduced liquidity towards year-end, are reinforcing gold's position as a stable asset.