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Gold prices fell on Wednesday (January 7, 2026) due to a stronger dollar and pressure on the metal as investors reassessed recent developments in the US Venezuela situation.
Spot gold fell 0.8% to $4,461.51 an ounce by 1001 GMT, after hitting its highest in more than a week earlier in the session. Bullion reached a record high of $4,549.71 on December 26, 2025.
US gold futures for February delivery were down 0.5% at $4,471.30.
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“It has been a very exciting and volatile start to the new year, so some profit-taking and a reassessment of the Venezuelan situation seems particularly appropriate,” said Jamie Dutta, chief market analyst at Nemo.Money. Signaling that Washington is coordinating with the Venezuelan government since the capture of President Nicolas Maduro, US President Donald Trump on Tuesday (January 6) unveiled a plan to refine and sell 50 million barrels of Venezuelan oil stranded in Venezuela under the US blockade.
Putting further pressure on gold, the US dollar edged closer to its highest level in more than two weeks, making the greenback-denominated metals more expensive for holders of other currencies. Federal Reserve Governor Stephen Miron said on Tuesday (Jan 6) that aggressive US interest rate cuts are needed this year to prop up the economy, while Richmond Fed President Thomas Barkin said further interest rate changes would be needed following upcoming data.
Markets are expecting two rate cuts this year, as investors keep an eye on ADP employment data due later in the day and US non-farm payrolls data on Friday (January 9) for further signals on monetary policy.
Non-yielding assets like gold perform well in low interest rate environments and during periods of geopolitical or economic uncertainty.
In other precious metals, spot silver fell 2.3% to $79.40 an ounce, down from a high of $83.62 hit on Dec. 29.
Spot platinum fell 6% to $2,297.56 an ounce, down from a record high of $2,478.50 set last Monday (January 5). It rose by more than 3% in the first session. Palladium traded 4.5% lower at $1,740.12 an ounce.
published – January 07, 2026 10:41 PM IST
