Gold Touches Record High of $4,500 as U.S.–Venezuela Tensions Rise
Spot silver is up 1.6% at $69.67, after touching a record high of $69.98, with year-to-date gains exceeding 141%.
Quick overview
- Gold prices have surged 72% year to date, currently trading around $4,517 per ounce.
- Rising geopolitical tensions and interest rate expectations are driving investors towards gold as a safe haven.
- Spot silver has seen a remarkable gain of over 141% this year, while platinum and palladium also reached multi-year highs.
- Analysts warn that thinner liquidity could lead to price volatility, but a rally is expected to continue into next year.
The precious metal is up as much as 72% year to date, although some analysts warn that thinner liquidity could destabilize prices.
Gold is rising 1% and has returned to record territory after breaking above the $4,500 mark, currently trading around $4,517 per ounce. The metal remains firmly in an uptrend and is on track for one of its strongest years on record, with gains approaching 72% so far this year.
This time, expectations around interest rates have been compounded by rising tensions between the United States and Venezuela, prompting investors to flock to gold as a safe haven.
Market participants continue to view precious metals as an effective way to diversify portfolios and preserve value, suggesting that gold and silver may not yet have reached their peaks.
Spot silver is up 1.6% at $69.67, after touching a record high of $69.98, with year-to-date gains exceeding 141%. In line with gold and silver, spot platinum is advancing 1.9% to $2,165.67, its highest level in more than 17 years, while palladium is also up 1.9% at $1,792.51, marking a three-year high.
The Fed, Venezuela, and liquidity: key drivers behind gold prices
Last week, U.S. President Donald Trump announced a “blockade” of all sanctioned oil tankers entering and leaving Venezuela. Against this backdrop, investors sought refuge in gold, which also received support from reports suggesting the president could appoint a new chair of the Federal Reserve as early as January.
Analysts note that gold may remain particularly sensitive to geopolitical headlines and shifts in interest-rate expectations. As year-end approaches, reduced liquidity could amplify price swings.
Some expect a period of consolidation during the holiday season as liquidity dries up. However, they argue that the rally should resume in earnest once trading volumes return, with $5,000 per ounce seen as a natural target for gold next year and $75 per ounce as a longer-term objective for silver.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
