Gold near $4,500 as safe-haven demand intensifies

Spot gold climbed 0.8% to $4,479.18 per ounce by 0527 GMT, after touching an intraday record of $4,497.55 earlier in the session. Meanwhile, U.S. gold futures for February delivery advanced 1% to $4,511.50, underscoring strong investor conviction that bullion’s upward momentum remains intact.

Market participants attributed the sharp rise primarily to heightened geopolitical risks following U.S. President Donald Trump’s announcement of a “blockade” on all oil tankers under sanctions entering or leaving Venezuela. The move has intensified concerns about potential supply disruptions, regional instability and broader geopolitical fallout, all of which traditionally boost demand for gold as a store of value.

“U.S.-Venezuelan tensions are keeping gold firmly on the radar for investors as an uncertainty hedge,” said Tim Waterer, chief market analyst at KCM Trade. He added that gold’s rally this week also reflects a broader shift in market positioning, as expectations grow that U.S. interest rates will ease further.

Rate-cut bets and Fed leadership speculation add fuel

Additional support for bullion came from reports suggesting that President Trump could name a new Federal Reserve Chair by early January, raising speculation that the central bank could tilt toward a more dovish policy stance. Markets are currently pricing in at least two U.S. rate cuts next year, a scenario that tends to favour non-yielding assets like gold by lowering the opportunity cost of holding them.

Waterer noted that investors continue to view precious metals as an effective way to diversify portfolios and preserve purchasing power, particularly in an environment marked by geopolitical stress, policy uncertainty and currency volatility. “I don’t think we are at the high watermark yet for gold or silver,” he said.

A powerful mix of drivers behind gold’s historic run

Gold has now soared more than 70% so far this year, propelled by a potent combination of factors. These include persistent geopolitical risks, aggressive central bank buying, expectations of looser global monetary policy, ongoing de-dollarisation trends, and renewed inflows into gold-backed exchange-traded funds (ETFs) after a prolonged period of investor caution.

Analysts also pointed out that with year-end approaching, thinner trading volumes could amplify price swings in either direction. “Lower liquidity conditions can exaggerate moves, particularly when markets are highly sensitive to geopolitical headlines and interest rate expectations,” said Frank Walbaum, market analyst at Naga. He added that gold is likely to remain volatile but well-supported as long as uncertainty persists.

Silver outshines gold with explosive gains

Silver followed gold higher, gaining 0.5% to $69.39 per ounce after earlier touching a record $69.98. The metal’s year-to-date gains have now exceeded 141%, significantly outperforming gold. Analysts attribute silver’s remarkable rally to a combination of structural supply deficits, strong industrial demand—particularly from the solar and electronics sectors—and rising investment interest.

Michael Brown, senior strategist at Pepperstone, said some short-term consolidation cannot be ruled out during the festive period as liquidity dries up. However, he remains bullish on the broader trend. “Once volumes return, the rally should resume in earnest,” he said, adding that $5,000 per ounce is a natural medium-term target for gold, while $75 for silver remains a plausible longer-term objective.

Platinum and palladium join the rally

The bullish sentiment spilled over into other precious metals. Spot platinum jumped 1.9% to $2,165.67, marking its highest level in more than 17 years, driven by spillover demand from gold and silver, as well as supply-side concerns. Palladium also advanced 1.9% to $1,792.51, hitting a three-year high.

Market watchers noted that the broad-based strength across the precious metals complex highlights investors’ growing appetite for tangible assets amid persistent global uncertainty.

As geopolitical risks simmer, rate-cut expectations build and liquidity conditions tighten toward year-end, analysts believe gold and its peers are likely to remain firmly in focus, with further record highs not ruled out in the months ahead.