Gold and Oil Rise as Geopolitical Risks Mount

From youtube.com/bloombergpodcasts

Oil rose from a four-and-a-half-year low after the US signaled tougher measures against Russia to spur a peace deal in Ukraine after declaring a blockade of Venezuelan oil exports. Gold rose, approaching record levels, as investors looked ahead to US inflation data and monitored escalating tensions in Venezuela. Silver climbed to a fresh peak, and platinum jumped to the highest since 2008. Bloomberg's Mike McGlone joins to discuss the outlook for commodities going into 2026. Gold rose, approaching record levels, as investors looked ahead to US inflation data and monitored escalating tensions in Venezuela. Silver climbed to a fresh peak, and platinum jumped to the highest since 2008. Bullion traded near $4,350 an ounce, recovering from a modest decline in the previous session that snapped a five-day winning streak. Inflation numbers due Thursday will be watched closely for clues on how the Federal Reserve’s appetite for further rate cuts might be impacted. Ahead of the release, several key Fed officials are due to speak publicly. Gold was also boosted by events in Venezuela, with President Donald Trump ordering a blockade of all sanctioned oil tankers. The US leader is also pressuring his Venezuelan counterpart Nicolas Maduro amid a military buildup in the region and the threat of land strikes. “The tensions seem to be gradually ratcheting up,” said David Wilson, senior commodities strategist at BNP Paribas. Every factor supporting gold — from inflationary pressures to US equities and a global growth slowdown — appears to be occurring simultaneously, he said, predicting that bullion could reach $5,000 sometime next year. Gold is not far off the record high above $4,381 an ounce set in October. The precious metal has jumped more than 60% this year and is on track for its best annual performance since 1979. The scorching rally has been driven by elevated central-bank buying, as well as a broader pullback by investors from government debt and key currencies. Geopolitical tensions have also enhanced its haven appeal. Investors are watching closely for any sign of further monetary easing after the US central bank last week delivered its third consecutive rate cut — a tailwind for precious metals, which don’t pay interest. For now, traders are assigning a less-than-25% chance of a reduction in January.