Gold Price Forecast: XAU/USD rises to record high above $4,550 on geopolitical risks, rate cut bets

FXStreetJan 12, 2026 12:41 AM

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Gold price jumps to a record high around $4,555 in Monday’s early Asian session.
Geopolitical tensions remained elevated, boosting safe-haven assets such as Gold.
The US economy added 50,000 jobs in December, below the consensus.

Gold price ( XAU/USD) rises to a fresh all-time high near $4,555 during the early Asian session on Monday. The precious metal extends its upside amid safe-haven demand and expectations of a US interest rate cut. Traders will take more cues from the release of the US Consumer Price Index (CPI) inflation data later on Tuesday.

CNN reported on Sunday that US President Donald Trump is weighing a series of potential military options in Iran following deadly protests in the country. The sources said Trump considers following through on his recent threats to strike the Iranian regime should it use lethal force against civilians.

Furthermore, the United Kingdom (UK) and Germany are discussing plans to increase their military presence in Greenland to show Trump that the continent is serious about Arctic security. This action came after the arrest of former President Nicolas Maduro by US forces last week. Uncertainty and geopolitical risks across the globe have boosted a traditional safe-haven asset like Gold.

A mixed US jobs report added to expectations for US Federal Reserve (Fed) rate cuts, which provide some support to the yellow metal. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

The US Nonfarm Payrolls (NFP) rose by 50,000 in December, according to the US Bureau of Labor Statistics (BLS) on Friday. This reading followed November's 56,000 (revised from 64,000) and came in below the market consensus of 60,000. The Unemployment Rate ticked lower to 4.4% in December from 4.6% in November.

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