Gold extends rally as easing bets…

12 December 2025

Gold Extends Rally as Easing Bets and Escalating Geopolitical Tensions Lift Safe-Haven Demand

Today’s markets analysis on behalf of Joseph Dahrieh, Managing Principal at Tickmill

Gold prices rose for another session on Friday, trading above USD 4,300 and heading for a strong weekly gain. The precious metal continues to benefit from firm expectations of further Federal Reserve easing, ongoing central-bank purchases and a broadening set of geopolitical risks that are sustaining safe-haven flows.

Fresh labour-market data reinforced the dovish shift in market pricing. Initial jobless claims for the week of December 6 climbed to their highest level in more than two months, adding to evidence of cooling in hiring conditions. This followed the Fed’s 25 bps cut and a tone that was less hawkish than expected. Traders now price in two cuts for 2026. The central bank also announced a USD 40bn programme to purchase short-term Treasury bills, a step expected to cap front-end yields and indirectly support precious metals.

On the geopolitical front, tensions broadened further. The United States is preparing additional interceptions of vessels carrying Venezuelan oil after seizing a tanker this week, escalating pressure on President Nicolás Maduro. In Asia, US nuclear-capable bombers conducted joint flights with Japan in response to recent Chinese and Russian military drills, reinforcing concerns about regional stability. Meanwhile, tensions in the Middle East and Eastern Europe persists, with ceasefire prospects still distant despite sustained diplomatic efforts.