Gold prices refuse to drop below $4,400. Investors bid up the price of gold at the week’s start, seeking safety as the world became a bit messier. The main driver? Geopolitical tension—lots of it. The weekend brought a blast of news about US military action in Venezuela and the arrest of President Nicolás Maduro. That alone rattled markets. President Trump then ratcheted up pressure with some bullish rhetoric aimed at other Latin American governments, heightening concerns about further chaos in the region. When headlines shake this much, investors reach for gold to protect what they have.
Rate Cut Hopes Keep Gold in the Spotlight
It’s not just politics keeping gold strong. Hopes for US interest rate cuts are adding fuel to the fire. Plenty of investors expect the Federal Reserve to lower rates more than once before the year’s out. Gold doesn’t pay any interest, but when borrowing gets cheaper, gold starts to look better compared to cash or bonds. Even though the US Dollar has bounced back a bit lately, it still hasn’t been enough to slow gold’s momentum.
Gold’s Strength Surprises, Even With a Firm Dollar
Usually, a stronger U.S. dollar puts the brakes on gold. Not this time. Gold is holding its ground, which speaks volumes about the current appetite for safety. Traders are glued to upcoming US economic reports—jobs numbers, inflation data—trying to guess what the Fed will do next. As long as global risks keep piling up and people keep betting on rate cuts, gold probably isn’t going anywhere. Bottom line: investors are playing it safe, and gold’s the favorite shelter right now.
