Analyst: Expectations of rate cuts and safe-haven demand boost gold prices; key non-farm payroll data to be released this week

On January 6, according to Jin10 data, driven by dovish remarks from Federal Reserve officials boosting expectations of rate cuts and tensions in Venezuela increasing safe-haven demand, gold prices continued to rise on Tuesday, reaching a one-week high.
Tastylive Global Macro Director Ilya Spivak stated, (the remarks from Federal Reserve officials) of course did not cause a negative impact, but it does not seem to have fundamentally changed the market's judgment.
This week is very critical, with the employment report to be released on Friday. On Monday, Federal Reserve Kashkari said that inflation is slowly declining, but there is a risk of a "sudden increase" in the unemployment rate, which increases the likelihood of rate cuts. Currently, investors expect at least two rate cuts this year. Spivak added, “The US-Venezuela incident with Maduro highlights a broader trend of de-globalization.” In a low-interest-rate environment and during periods of geopolitical or economic uncertainty, assets that do not generate yields tend to perform better.