Gold prices surged to a new record, exceeding US$4,500 an ounce, driven by escalating tensions in Venezuela and growing expectations of further interest rate cuts in the United States. Silver and platinum also reached all-time highs during the session.
Spot gold rose 0.9% to $4,486.55 an ounce, after reaching a session peak of $4,497.55. U.S. gold futures for February delivery advanced 1.1% to $4,519.20 an ounce.
Silver prices climbed as well, with spot silver increasing 0.8% to $69.56 an ounce, following a record high of $69.98. Since the start of the year, silver has recorded a gain of more than 141%, outpacing gold’s growth. This strong performance is attributed to ongoing supply shortages, robust industrial demand, and sustained investment inflows.
Michael Brown, Senior Strategist at Pepperstone, noted that the market could see a phase of moderate consolidation during the holiday season due to reduced liquidity. However, he anticipates a return to active growth as trading volumes normalize. Looking ahead, Brown identified $5,000 per ounce as the medium-term target for gold, while forecasting a long-term target of $75 per ounce for silver.
Rising tensions between the United States and Venezuela have bolstered demand for gold as a safe-haven asset. Analysts indicate that investors are increasingly turning to precious metals amid expectations of additional U.S. interest rate reductions.
The market also found support from discussions about potential changes within the Federal Reserve and indications of a more accommodative monetary policy stance. Gold has now risen over 70% since the beginning of the year, maintaining its sensitivity to geopolitical developments and shifts in market expectations regarding interest rates.
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