Gold prices soar to record high amid US-Venezuela tensions
What's the story
Gold prices have hit an all-time high, nearly breaching the $4,500-per-ounce mark. The surge comes as investors flock to the safe-haven metal amid rising tensions between the United States and Venezuela. Spot gold was trading at $4,486.41 per ounce after hitting a record $4,497.55 earlier in the day. US gold futures for February delivery also jumped 1.1% to $4,519.70 per ounce.
Analyst insights
Market analyst comments on gold's price surge
Tim Waterer, Chief Market Analyst at KCM Trade, said the ongoing US-Venezuelan tensions are keeping gold on investors' radar as an uncertainty hedge. He added that gold has surged this week as part of a broader positioning shift, with US interest rates expected to ease further. Waterer also noted that buyers continue to see precious metals as an effective way to diversify portfolios and preserve value.
Policy impact
Trump's actions influence gold market
US President Donald Trump recently announced a "blockade" of all oil tankers under sanctions entering and leaving Venezuela. This move, along with reports that he could name a new Federal Reserve Chair by early January, has further supported gold prices. The markets are now pricing in two rate cuts for next year amid expectations of a more dovish policy stance from the Fed.
Bullion's rise
Gold's performance amid geopolitical and economic uncertainty
Gold, a traditional safe haven in times of geopolitical and economic uncertainty, has surged over 70% this year. The rise is attributed to a combination of geopolitical risks, rate-cut bets, central bank buying, de-dollarization, and also renewed exchange-traded fund inflows.
Precious metals
Silver and platinum also see significant price increases
Spot silver was trading at $69.70 per ounce after hitting a record $69.98 earlier in the day, with year-to-date gains topping 141%. Michael Brown from Pepperstone said some consolidation is possible over the festive period as liquidity thins but expects the rally to resume once volumes return. Spot platinum jumped 1.2% to $2,145.10, its highest in more than 17 years, while palladium surged 3.4% to a three-year high of $1,819.00 tracking strength in gold and silver prices.