Gold prices climbed to a record high above US$4,500 an ounce, driven by escalating geopolitical tensions involving Venezuela and growing expectations of further interest rate cuts in the United States. Silver and platinum also advanced to all-time highs.
Spot gold rose 0.9% to US$4,486.55 an ounce, after touching a record US$4,497.55 earlier in the session. Meanwhile, U.S. gold futures for February delivery gained 1.1% to US$4,519.20 an ounce.
Silver also recorded strong gains, with spot prices rising 0.8% to US$69.56 an ounce, after hitting a record high of US$69.98. Silver has surged more than 141% since the beginning of the year, significantly outperforming gold amid supply shortages, strong industrial demand, and robust investment inflows.
Pepperstone Senior Strategist Michael Brown said markets may enter a phase of moderate consolidation during the holiday season due to lower liquidity. However, he expects a renewed rally once full trading volumes return. In the medium term, he identified US$5,000 per ounce as a natural target for gold, while maintaining a long-term target of US$75 for silver.
Rising tensions between the United States and Venezuela have further strengthened demand for gold as a safe-haven asset. Analysts note that investors are increasingly turning to precious metals amid expectations of additional U.S. interest rate cuts.
Additional market support came from speculation over possible leadership changes at the Federal Reserve and signals pointing to a more accommodative monetary policy stance. Gold has risen over 70% since the start of the year, remaining highly sensitive to geopolitical developments and shifts in interest rate expectations.
