The post Gold climbs on US rate cut expectations, geopolitical tensions appeared on BitcoinEthereumNews.com.

Gold price (XAU/USD) extends the rally above $4,350 during the Asian trading hours on Wednesday. Gold’s price has surged about 65% this year and is set to record its biggest annual gains since 1979. The rally in the precious metal is bolstered by the prospect of further US interest rate cuts in 2026. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal. Furthermore, the persistent Israel-Iran conflict and the ongoing US-Venezuela tensions could boost the yellow metal. It’s worth noting that traders seek assets that can preserve value during periods of uncertainty, which supports a traditional safe-haven asset such as Gold. On the other hand, increased margin requirements on gold and silver futures by the Chicago Mercantile Exchange (CME) Group could prompt widespread profit-taking and portfolio rebalancing, which might cap the upside for the yellow metal. Additionally, reported progress on a Ukraine peace deal might drag the Gold price lower.  Traders brace for the release of the US Initial Jobless Claims report later on Wednesday. Economists forecast a modest rise in new applications for the week ending December 27 to 220,000, compared to 214,000 in the previous week. Financial markets are expected to trade on thin volumes as traders prepare for the New Year holiday. Daily Digest Market Movers: Gold heads for biggest annual price gains in over 40 years The US Federal Reserve (Fed) decided to cut the interest rate by 25 basis points (bps), bringing the federal funds rate to a target range of 3.50%–3.75%. Those in favor cited increased downside risks to employment and easing inflation pressures.  Fed Governor Stephen Miran voted against the action in favor of a jumbo rate cut, while Chicago Fed President Austan Goolsbee and Kansas City’s Jeff Schmid dissented in favor of leaving rates unchanged. According to minutes from the Federal…

---

Filed under: News - @ December 31, 2025 4:17 am