Gold surged to a fresh record on Tuesday, coming close to breaching the $4,500-per-ounce mark as escalating US-Venezuela tensions and expectations of lower US interest rates drove investors toward safe-haven assets.
Spot gold rose 0.9% to $4,486.41 per ounce as of 3:29 a.m. GMT, after hitting an all-time high of $4,497.55 earlier in the session. US gold futures for February delivery climbed 1.1% to $4,519.70.
“US-Venezuelan tensions are keeping gold on the radar for investors as an uncertainty hedge,” said Tim Waterer, chief market analyst at KCM Trade. He noted that gold’s rally this week reflects a broader shift in positioning, with markets anticipating further easing from the Federal Reserve.
Investors continue to view precious metals as a way to diversify portfolios and preserve value, Waterer added. “I don’t think we are at the high watermark yet for gold or silver,” he said.
The latest geopolitical catalyst came after US President Donald Trump announced a “blockade” on all oil tankers under sanctions entering or leaving Venezuela. Additional support for gold came from reports that Trump could name a new Federal Reserve Chair by early January, with markets now pricing in two rate cuts for 2026 and expectations of a more dovish policy stance.
Bullion has soared more than 70% this year, its biggest annual gain in decades, buoyed by geopolitical risks, central bank buying, de-dollarization, and renewed inflows into exchange-traded funds.
Silver also rallied, rising 1% to $69.70 after touching a record $69.98. The metal has gained more than 141% year-to-date, outpacing gold on the back of persistent supply deficits, robust industrial demand, and strong investment inflows.
Michael Brown, senior strategist at Pepperstone, said some consolidation was possible over the festive period as liquidity thinned, but predicted the rally would resume in earnest once trading volumes returned. He sees $5,000 as a natural target for gold next year, with $75 a longer-term objective for silver.
Elsewhere in the precious metals market, spot platinum jumped 1.2% to $2,145.10, its highest level in more than 17 years, while palladium advanced 3.4% to a three-year high of $1,819.00, tracking gains in gold and silver.
