Is Gold Losing Its Shine-or Just Catching Its Breath Before the Next Big Move?
Source: Kapitales Research
Key highlights:
Gold steadied near US$4,450 after a sharp 2.7% rally
Traders shifted focus from Venezuela to US jobs and inflation data
Rate expectations remain the key driver for gold prices
Investors pause after a strong rally as focus shifts to US data
Gold prices steadied on Tuesday as traders looked past political tensions in Venezuela and instead turned their attention to a busy week of economic data from the United States. At the time of writing, bullion was trading near US$4,450 an ounce, little changed on the session after jumping about 2.7% in the previous trading day. The earlier surge had been driven by geopolitical uncertainty following the capture of former Venezuelan leader Nicolás Maduro and renewed questions about the country’s future governance after US President Donald Trump said the United States plans to “run” Venezuela. While those headlines initially lifted demand for safe-haven assets, markets are now shifting their focus back to macroeconomic signals that could influence interest rate expectations and currency movements.
Why US data now matters more than politics
Traders are closely watching a series of key US economic releases due this week, with the December jobs report on Friday seen as the main event. Employment data plays a crucial role in shaping expectations for inflation, wage growth and future interest rate decisions by the Federal Reserve. Minneapolis Federal Reserve President Neel Kashkari added to the cautious tone by saying that interest rates may be close to a “neutral” level — meaning future policy moves will depend heavily on incoming economic data rather than a pre-set plan. This has made gold traders hesitant to push prices higher until there is more clarity on whether rates will fall further or remain steady.
A powerful year still supports the long-term story
Despite the recent pause, gold remains in a strong long-term position. The metal is coming off its best annual performance since 1979, after hitting multiple record highs last year. Central bank buying, strong inflows into gold-backed exchange-traded funds and three rate cuts by the US Federal Reserve all helped fuel the rally. Lower interest rates tend to support gold because the metal does not offer interest income, making it more attractive when yields fall elsewhere.
What investors are watching next
Markets are now waiting to see whether economic data reinforces expectations for easier monetary policy — which could send gold higher again — or whether stronger numbers limit further upside.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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Is Gold Losing Its Shine-or Just Catching Its Breath Before the Next Big Move?
Key highlights:
Investors pause after a strong rally as focus shifts to US data
Gold prices steadied on Tuesday as traders looked past political tensions in Venezuela and instead turned their attention to a busy week of economic data from the United States. At the time of writing, bullion was trading near US$4,450 an ounce, little changed on the session after jumping about 2.7% in the previous trading day. The earlier surge had been driven by geopolitical uncertainty following the capture of former Venezuelan leader Nicolás Maduro and renewed questions about the country’s future governance after US President Donald Trump said the United States plans to “run” Venezuela. While those headlines initially lifted demand for safe-haven assets, markets are now shifting their focus back to macroeconomic signals that could influence interest rate expectations and currency movements.
Why US data now matters more than politics
Traders are closely watching a series of key US economic releases due this week, with the December jobs report on Friday seen as the main event. Employment data plays a crucial role in shaping expectations for inflation, wage growth and future interest rate decisions by the Federal Reserve. Minneapolis Federal Reserve President Neel Kashkari added to the cautious tone by saying that interest rates may be close to a “neutral” level — meaning future policy moves will depend heavily on incoming economic data rather than a pre-set plan. This has made gold traders hesitant to push prices higher until there is more clarity on whether rates will fall further or remain steady.
A powerful year still supports the long-term story
Despite the recent pause, gold remains in a strong long-term position. The metal is coming off its best annual performance since 1979, after hitting multiple record highs last year. Central bank buying, strong inflows into gold-backed exchange-traded funds and three rate cuts by the US Federal Reserve all helped fuel the rally. Lower interest rates tend to support gold because the metal does not offer interest income, making it more attractive when yields fall elsewhere.
What investors are watching next
Markets are now waiting to see whether economic data reinforces expectations for easier monetary policy — which could send gold higher again — or whether stronger numbers limit further upside.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au