Gold touched a record high on December 23, coming within a whisker of breaching the key USD 4,500 per ounce level, as investors flocked to the safe-haven metal amid the United States-Venezuela tensions. On the other hand, silver too rallied to an all-time peak.
While spot gold rose 0.7% to USD 4,476.15 per ounce, US gold futures for February delivery rose 0.9% to USD 4,509.80. Spot silver advanced 0.6% to USD 69.44 per ounce after touching a record high of USD 69.98, with its year-to-date gains topping 141% and outpacing gold on supply deficits, industrial demand, and investment inflows.
“United States-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 in the penultimate week of 2025 as part of a broader positioning shift, as analysts project the Federal Reserve’s interest rates to ease further.
Waterer said buyers continued to see precious metals as an effective way to diversify portfolios and preserve value amid geopolitical uncertainties, adding that “I don’t think we are at the high watermark yet for gold or silver.”
President Donald Trump, in the middle of December, announced a “blockade” of all oil tankers under sanctions entering and leaving Venezuela.
Meanwhile, further support for gold came from reports that the Republican could name a new Federal Reserve Chair by early January 2026, 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% so far in 2025, riding a potent mix of factors like 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 trading and investment platform Naga, noting that gold might remain especially sensitive to geopolitical headlines and shifts in rate expectations.
“Some consolidation was possible over the festive period as liquidity thinned,” said Michael Brown, a senior strategist at Pepperstone, while talking about silver’s current price volatility. He, however, concluded the rally should resume in earnest once volumes returned, with the USD 5,000 level a natural target for gold in 2026.
During the December 23 rally, spot platinum jumped 2.2% to USD 2,167.25, its highest in more than 17 years, while palladium rose 2.5% to a three-year high of USD 1,803.91, tracking strength in gold and silver.