Gold and silver prices soared to historic highs
23 December 13:11
Gold hit a new all-time high on Tuesday, December 23, almost reaching the psychological mark of $4,500 an ounce, as investors flocked to the safe-haven asset amid tensions between the US and Venezuela. Silver also rose to a new record high.
This was reported by Reuters, "Komersant Ukrainian" reports.
The price of spot gold rose by 0.7% to $4,476.15 per ounce, after reaching a record $4,497.55 earlier in the session. US gold futures for February delivery rose 0.9% to $4,509.80.
“Tensions between the US and Venezuela are keeping gold on investors’ radar as an uncertainty hedge,” said Tim Waterer, chief market analyst at KCM Trade, adding that gold has soared this week as part of a broader rebalancing of positions amid expectations of further US rate cuts.
Waterer noted that buyers continue to see precious metals as an effective way to diversify portfolios and preserve value, adding, “I don’t think we’ve reached peak levels for gold or silver yet.”
Last week, US President Donald Trump announced a “blockade” of all sanctioned oil tankers entering and leaving Venezuela.
Gold was further supported by reports that Trump may announce a new Federal Reserve chairman in early January. The markets are pricing in two rate cuts next year amid expectations of a looser monetary policy.
Gold, a classic “safe-haven” asset in times of geopolitical and economic turbulence, has risen by more than 70% since the beginning of the year, benefiting from a powerful mix of factors: geopolitical risks, expectations of rate cuts, central bank purchases, de-dollarization, and inflows into ETFs.
“As we approach the end of the year, thinner liquidity may amplify price fluctuations,” said Frank Walbaum, market analyst and platform manager at Naga, noting that gold may remain particularly sensitive to geopolitical news and changes in rate expectations.
Spot silver rose by 0.6% to $69.44 per ounce, having previously updated its record at $69.98. Since the beginning of the year, silver has gained over 141%, outperforming gold due to supply shortages, industrial demand and investment flows.
Spot platinum jumped 2.2% to $2,167.25, its highest level in more than 17 years, and palladium rose 2.5% to a three-year peak of $1,803.91, following the rise in gold and silver.
