Gold prices near $4330 an ounce

SadaNews - The price of gold stabilized near a record level as investors closely monitor escalating tensions in Venezuela while awaiting U.S. inflation data. Meanwhile, platinum continued its rapid rise, increasing by up to 4%.

The precious metal traded near $4330 an ounce after rising by 0.8% on Wednesday. The metal is currently about $50 away from its all-time high recorded in October.

Inflation data is scheduled to be released on Thursday, which will be closely watched for indicators on how it may affect the Federal Reserve's appetite for further interest rate cuts.

The Federal Reserve had implemented its third consecutive interest rate cut last week, which has supported non-yielding precious metals; however, it remained ambiguous about the pace of monetary easing moving into next year.

Waller supports interest rate cuts

U.S. President Donald Trump expressed his support for a sharp interest rate cut. Currently, traders estimate a 25% chance of a rate cut in January.

Federal Reserve Board member Christopher Waller, a candidate to become the next Fed Chair, has supported further interest rate cuts, while also affirming that policymakers do not need to rush.

He stated, "Since inflation is still high, we can take our time; there is no rush to cut," during a forum on CNBC.

Record performance for gold supported by central banks

Gold has surged about two-thirds this year and is on track to record its best annual performance since 1979, following a sharp uptrend driven by purchases from central banks and a broader pullback by investors from government debt and major currencies.

The amount of gold held in exchange-traded funds has increased by 18% this year, according to data compiled by Bloomberg.

The escalation of geopolitical tensions has also heightened gold's appeal as a safe haven. The precious metal received support this week from developments in Venezuela, where Trump ordered a blockade on all sanctioned oil tankers.

The bolstering of U.S. military presence in the region has also increased pressure on President Nicolas Maduro's government while the leaders of Mexico and Brazil have offered to mediate.

Gold dropped 0.1% to $4332.19 an ounce by 12:57 PM in Singapore. Platinum surged 2.7% to $1954.56, after reaching its highest level since 2008 earlier. Silver and palladium increased slightly, while the Bloomberg Dollar Spot Index remained unchanged.