Gold Remains Near Record Levels Supported by Interest Rate Cut Expectations and Geopolitical Risks

Gold prices maintained trading close to their highest historical levels during Thursday's sessions, despite a slight decline, as the price dropped to around $4,330 per ounce, remaining near the historical peak recorded in October. This stability is supported by increasing expectations for U.S. interest rate cuts and ongoing geopolitical tensions.

This performance follows comments from U.S. Federal Reserve Board member Christopher Waller, who expressed support for further interest rate cuts, emphasizing that policymakers can act cautiously and thoughtfully in the upcoming phase.

These statements coincided with the release of U.S. labor market data, which showed further slowdown, with the unemployment rate reaching its highest level in four years. Additionally, job gains in November were insufficient to offset the decline recorded in October, reinforcing bets on further monetary easing.

The markets are currently focused on the upcoming Consumer Price Index (CPI) report, which was delayed, as it carries crucial signals regarding the inflation trajectory and U.S. monetary policy.

Meanwhile, geopolitical risks continue to support demand for gold as a safe haven, with the U.S. moving to halt all sanctioned Venezuelan oil shipments following a tanker seizure and military escalation last week. In Ukraine, Russian President Vladimir Putin reiterated his territorial demands, despite intensified U.S. efforts to push for a diplomatic resolution to the conflict.

This scenario reflects the ongoing appeal of gold in an environment characterized by potential economic slowdown, expectations of monetary easing, and rising geopolitical risks, keeping the precious metal close to its historically high levels.