Gold Markets Eye Record Territory Amid Geopolitical Tensions and Rate Cut Expectations

Rising tensions in global markets are reshaping investor sentiment, with safe-haven assets gaining renewed traction. Recent geopolitical developments, including US policy measures targeting Venezuelan oil shipments, have amplified uncertainty in energy markets and triggered increased demand for protective assets.

Market participants are closely monitoring monetary policy signals as the focal point of near-term trading strategies. According to DHF Capital CEO Bas Kooijman, despite volatility in recent employment figures, consensus expectations remain centered on potential Federal Reserve rate reductions—with markets pricing in approximately two cuts during the first half of 2026. This dovish monetary outlook is creating tailwinds for precious metals.

The upcoming inflation data release scheduled for Thursday represents a critical juncture for asset allocation. Should the Consumer Price Index report reveal a meaningful deceleration in inflation dynamics, the implications could be significant across multiple asset classes. Lower inflation readings would likely exert downward pressure on bond yields and undermine US dollar strength, both factors historically supportive for gold valuations.

Kooijman’s analysis underscores how current market conditions are converging to create a bullish backdrop for precious metals. The combination of easing rate expectations, potential dollar weakness, and geopolitical risk premiums positions gold prices to potentially break through historical resistance levels in the quarters ahead.