Gold Slips as Markets Reevaluate U.S.–Venezuela Developments
Spot silver dropped 2.3% to $79.40 per ounce, retreating from its record high of $83.62 reached on December 29.
Quick overview
- Gold prices fell 0.7% to $4,459.80 per ounce as investors reacted to U.S. military actions in Venezuela and a stronger dollar.
- Spot silver dropped 2.3% to $79.40 per ounce, while platinum and palladium also experienced significant declines.
- Market focus is shifting back to U.S. economic data, with key reports on employment expected this week.
- Major Wall Street indices showed mixed performance in premarket trading, with the S&P 500 and Nasdaq both down slightly.
Like gold, other precious metals such as silver, platinum, and palladium also posted losses.
Gold weakened as investors reassessed the situation following the U.S. military intervention in Venezuela, while a stronger dollar added further pressure to prices.
Spot gold fell 0.7% to $4,459.80 per ounce, after briefly touching a more-than-one-week high earlier in the session. On December 26, bullion reached a record high of $4,549.71, while U.S. gold futures for February delivery slipped 0.5% to $4,471.30.
Gold pressured by a stronger dollar and U.S. policy moves
The start of the year has been particularly volatile, making profit-taking and a reassessment of the Venezuelan situation appear timely.
On Tuesday, U.S. President Donald Trump unveiled a plan to refine and sell up to 50 million barrels of Venezuelan crude oil currently stranded in the country due to U.S. sanctions. At the same time, the dollar hovered near two-week highs, making dollar-priced metals more expensive for holders of other currencies.
Spot silver dropped 2.3% to $79.40 per ounce, retreating from its record high of $83.62 reached on December 29. Among other precious metals, platinum slid 6% to $2,297.56, pulling back from Monday’s all-time high of $2,478.50, despite having risen as much as 3% earlier in the session. Palladium also declined, falling 4.5% to $1,740.12.
Traditional markets
Market attention now turns to U.S. macroeconomic data, with investors focusing on Wednesday’s ADP private payrolls report and JOLTS job openings. The official employment report is due on Friday.
Major Wall Street indices traded lower in Wednesday’s premarket session, stepping back from Tuesday’s gains. As geopolitical tensions gradually fade from the forefront, U.S. economic indicators are once again taking center stage.
In this context, the S&P 500 was down 0.12% in premarket trading, while the tech-heavy Nasdaq Composite slipped 0.30%. The Dow Jones Industrial Average, meanwhile, edged 0.05% higher.
Among early movers, Albemarle (+2.4%), Regeneron (+1.9%), and Energy (+1.7%) led gains, while First Solar (-4.38%), Deckers Outdoor (-3.35%), and Newmont Goldcorp (-2.11%) posted the sharpest declines.
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