Jan 6 (Reuters) - Gold prices edged higher on Tuesday, hovering at a one-week peak and closing in on record levels, with safe-haven demand being fed by geopolitical tensions over the U.S. capture of Venezuela's president and expectations of U.S. rate cuts.
Spot gold was up 0.3% at $4,461.09 per ounce, as of 1135 GMT, after rising nearly 3% in the last session. Bullion hit a record high of $4,549.71 on December 26, and ended the year with a gain of 64%, its best annual performance since 1979.
U.S. gold futures for February delivery rose 0.3% to $4,462.60.
"Gold prices are supported by increased safe-haven demand amid heightened geopolitical uncertainty following weekend events in Venezuela, as well as by rising bets on Federal Reserve rate cuts after the release of disappointing U.S. manufacturing PMI data," said ActivTrades analyst Ricardo Evangelista.
Venezuela's Nicolas Maduro pleaded not guilty on Monday when he appeared in a New York court on charges of narco-terrorism and possession of machine guns and destructive devices.
U.S. manufacturing activity, meanwhile, contracted more than expected in December, falling to a 14-month low.
Minneapolis Fed President Neel Kashkari on Monday warned of the risk that the jobless rate could "pop" higher, increasing the likelihood of a rate cut.
Investors are currently expecting two rate cuts this year, and are looking out for December's nonfarm payrolls report, due on Friday, to gauge the trajectory of future monetary policy.
Non-yielding assets tend to do well in a low-interest-rate environment and during times of geopolitical or economic uncertainty.
Spot silver gained 2.4% to $78.31 per ounce, after hitting an all-time high of $83.62 on December 29. Silver recorded its strongest annual gain in 2025, surging 147%, on rising industrial and investor appetite.
Spot platinum was up 2.3% at $2,323.15 per ounce, after rising to an all-time high of $2,478.50 last Monday, while palladium traded 1.7% higher at $1,736.26 per ounce.
Reporting by Pablo Sinha in Bengaluru; Editing by Kate Mayberry and Joe Bavier
