Gold hits record high near $4,500 as US-Venezuela tensions escalate

Gold prices surged to record levels approaching $4,500 per ounce as demand for safe-haven assets intensified amid escalating geopolitical tensions between the United States and Venezuela, whilst silver reached a new all-time high, Emirates Al Youm reported on December 23.

Spot gold rose 0.8% to $4,479.18 per ounce after recording a peak of $4,497.55 earlier in the session.

The jump in gold comes on the back of investor concerns over the blockade imposed by US President Donald Trump on oil tankers travelling to and from Venezuela, alongside speculation about Federal Reserve leadership changes and expectations of interest rate cuts next year.

Silver continued its upward trajectory, reaching $69.39 per ounce after surpassing $69.98, marking annual gains of over 141%. The performance reflects a structural deficit in global supply against strong demand from technology and renewable energy sectors.

Platinum recorded its highest level in more than 17 years, whilst palladium touched a three-year peak, benefiting from collective momentum in the precious metals market.

Several factors contributed to the historic rally, primarily dedollarisation policies, intensive purchases by central banks, and liquidity flows into exchange-traded funds.

Despite potential price volatility due to year-end liquidity shortages, experts anticipate gold will continue its climb towards $5,000 in 2026, with precious metals maintaining their role as primary hedging instruments against economic uncertainty.