Thin trading conditions due to the holiday period amplified market moves, but the main driver remains rising geopolitical risk. Safe-haven demand also increased after US officials refused to rule out military action against Venezuela. The United States has stepped up pressure on Venezuelan oil exports, with reports of oil tankers being seized near the country’s coast. These actions have raised fears of escalation and retaliation, further supporting demand for Gold.

At the same time, hopes for a diplomatic breakthrough in Ukraine are fading. Recent comments suggest negotiations are progressing slowly, with little agreement on key issues. This has reduced confidence in a near-term ceasefire and increased uncertainty around the conflict. As a result, investors continue to favor defensive assets such as Gold.

From a technical perspective, Gold’s breakout came earlier than expected. Prices moved decisively above the previous high near $4,381, confirming the end of the initial consolidation phase. The short-term outlook remains bullish, and if prices break above the current resistance, the next upside target could be around $4,686.

Gold is also benefiting from expectations that the US Federal Reserve may cut interest rates following softer inflation data and weaker labor market figures. Lower interest rates reduce the opportunity cost of holding non-yielding assets like Gold.

Overall, Gold is supported by a combination of geopolitical risks, expectations of lower interest rates, and strong technical signals. While profit-taking during the holiday period could slow gains, the broader trend remains positive. From an investment perspective, long-term investors may consider maintaining a bullish bias, closely watching key support levels and monitoring global conflicts and US economic data for confirmation of the trend.