Gold, silver hit record highs amid geopolitical tensions
What's the story
Gold and silver prices have surged to all-time highs, driven by rising geopolitical tensions and a weakening US dollar. Spot gold has hit a new peak above $4,530 per ounce after gaining as much as 1.2%. The ongoing conflict in Venezuela, where the US has blocked oil tankers and intensified pressure on President Nicolas Maduro's government, has further boosted gold's safe-haven appeal.
Military action
US strikes terrorist group in Nigeria
In Africa, the US has launched a "powerful and deadly strike" against a terrorist group in Nigeria. The operation was confirmed by President Donald Trump through a social media post. This military action comes amid rising global tensions and further adds to gold's appeal as a safe-haven investment during uncertain times.
Market trends
Silver prices also surge amid market conditions
Silver prices have also witnessed a major surge, rising as much as 4.5% to cross $75 per ounce for the first time. The metal's recent rally is due to speculative inflows and persistent supply dislocations across major trading hubs after a historic short squeeze in October. The Bloomberg Dollar Spot Index, which measures the strength of the US dollar, fell by 0.8% this week—the largest decline since June—making gold and silver more attractive investments.
Annual performance
Gold and silver on track for record annual gains
Gold has gained around 70% this year while silver has skyrocketed by over 150%. Both metals are on course for their best annual performances since 1979. The spectacular rally is backed by high central-bank purchases, inflows into exchange-traded funds (ETFs), and three consecutive interest-rate cuts by the US Federal Reserve. Lower borrowing costs benefit precious metals that don't pay interest, with traders anticipating more rate cuts in 2026.