Gold rises as dovish Fed signals and Venezuela tensions lift demand

Gold climbed to a one-week high after US Federal Reserve remarks reinforced expectations of interest rate cuts, and tensions involving Venezuela increased demand for safe-haven assets.

Gold prices rose to a one-week high on Tuesday as remarks from US Federal Reserve officials strengthened expectations of interest rate cuts. Market participants also cited tensions involving Venezuela as a factor increasing demand for safe-haven assets. Oil prices fell amid signs of ample global supply and the prospect of higher Venezuelan crude output following the US capture of president Nicolas Maduro. Investors are awaiting the US payrolls report on Friday for further guidance on monetary policy. Key points: - Gold futures gained 0.5% to $4,472.40 an ounce, while spot prices rose 0.8% to $4,467.14 at the time of reporting. - The metal was trading less than $100 below its record peak of $4,548.92 reached last month. - Ilya Spivak of Tastylive said Fed remarks supported prices but were not decisive, and Minneapolis Fed president Neel Kashkari said inflation is easing gradually while warning the unemployment rate could "pop" higher. - Investors were pricing in at least two rate cuts this year and were awaiting the US payrolls report due on Friday for further policy guidance. - Brent crude futures fell 0.6% to $61.40 a barrel and West Texas Intermediate dropped 0.7% to $57.93, with analysts citing ample supply and muted market reaction to recent geopolitical events. Summary: Dovish signals from Fed officials and geopolitical tensions involving Venezuela supported demand for gold, lifting prices to a one-week high. Oil moved lower as supply data and prospects of higher Venezuelan output weighed on the market, and investors will watch the US payrolls report on Friday for additional clues on monetary policy.