The post Gold extends rally above $4,350 on US rate cut bets, geopolitical tensions appeared on BitcoinEthereumNews.com.

Gold price (XAU/USD) extends the rally to near $4,375 during the early European session on Friday. The rally in the precious metal is supported by the growing expectations of further interest rate cuts from the US Federal Reserve (Fed) and safe-haven demand. Traders await the release of the US economic data this month to gauge the path of interest rates. The US December Nonfarm Payrolls (NFP) report will be in the spotlight next week.  The Fed delivered the interest rate by a quarter point at its December policy meeting, bringing the federal funds rate to a target range of 3.50%–3.75%. Most Fed officials saw further interest-rate reductions as appropriate so long as inflation declines over time, though they remained divided over when and how far to cut, the Federal Open Market Committee (FOMC) Minutes showed.  Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. Furthermore, geopolitical risks could boost a traditional asset such as Gold, as it can preserve value during periods of uncertainty. Last week, Russia accused Ukraine of launching a drone strike on the Russian presidential residence in northern Russia, prompting Moscow to reconsider its stance in peace negotiations, per Reuters. Ukraine dismissed Russian statements about the drone attack, and its foreign minister said Moscow was seeking “false justifications” for further strikes against its neighbor.   Nonetheless, the upside for the yellow metal might be limited as traders could book their profits or rebalance their portfolios. The Chicago Mercantile Exchange (CME) Group, one of the world’s largest trading floors for commodities, raised margin requirements for gold, silver, and other metals. These notices require traders to put up more cash on their bets in order to insure against the possibility that the trader will default when they take delivery of the contract.  Gold FAQs Gold has…

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Filed under: News - @ January 2, 2026 7:21 am