Gold hits record high on safe-haven demand; silver climbs to new peak

Bullion, a classic refuge in times of geopolitical and economic unease, has surged more than ‍70 per cent this year, riding a potent mix of geopolitical risks, rate-cut bets, central bank buying, de-dollarisation and renewed exchange-traded fund inflows. | Photo Credit: istock.com

​Gold soared to a record high on Tuesday, coming within ‌a whisker of breaching the $4,500-per-ounce level, as investors ​flocked to the safe-haven metal on US-Venezuela tensions, while silver also rallied to a fresh peak.

Spot gold was up 0.9 per cent at $4,486.41 per ounce, as of 0329 GMT, after hitting a record $4,497.55 earlier in the day. U.S. gold futures for February delivery jumped 1.1 per cent to $4,519.70.

“U.S.-Venezuelan tensions are keeping gold on the radar for investors as an uncertainty ​hedge,” said Tim Waterer, chief market analyst at KCM Trade, adding ⁠that gold had surged this week as part of a broader positioning shift with U.S. interest rates projected to ease further.

Waterer said buyers continued to see precious metals ​as an effective way to ⁠diversify portfolios and preserve value, adding that “I don’t think we are at the high watermark yet for gold or silver.”

US President Donald Trump last week announced a “blockade” of all oil tankers under sanctions ‌entering and leaving Venezuela.

Further support for gold came from reports that ‌Trump could name a new Federal Reserve Chair by early January, with markets pricing in two rate cuts for ‍next year amid expectations of a more dovish policy stance.

Bullion, a classic refuge in times of geopolitical and economic unease, has surged more than ‍70 per cent this year, riding a potent mix of geopolitical risks, rate-cut bets, central bank buying, de-dollarisation and renewed exchange-traded fund inflows.

“With year-end approaching, thinner liquidity conditions could amplify price swings,” said Frank Walbaum, a market analyst at Naga, noting that gold might remain especially sensitive to geopolitical headlines and shifts in rate expectations.

Spot silver was up 1 per cent at $69.70 after touching a record $69.98, with year-to-date gains topping 141 per cent and outpacing gold on supply deficits, ⁠industrial demand and investment inflows.

Michael Brown, a senior strategist at Pepperstone, said some consolidation was possible over the festive period ​as liquidity thinned.

He, however, said the rally should resume in earnest once volumes ⁠returned, with the $5,000 level a natural target for gold next year and the $75 mark a longer-term objective for silver.

Spot platinum jumped 1.2 per cent to $2,145.10, its highest in more than 17 years, while palladium rose 3.4 per cent to a three-year high of $1,819.00, tracking strength in gold ⁠and silver.

Published on December 23, 2025