Gold prices surged to a record high above US$4,500 per ounce, driven by escalating geopolitical tensions and growing expectations of further interest rate cuts in the United States.

Spot gold rose 0.9% to US$4,486.55 per ounce, after touching an intraday record of US$4,497.55. Meanwhile, U.S. gold futures for February delivery climbed 1.1% to US$4,519.20 per ounce.

Silver also rallied strongly, with spot prices increasing 0.8% to US$69.56 per ounce, after hitting an all-time high of US$69.98. Silver has gained over 141% since the beginning of the year, outperforming gold amid supply shortages, strong industrial demand, and increased investment inflows.

Pepperstone Senior Strategist Michael Brown noted that markets may see moderate consolidation during the holiday season due to lower liquidity, but expects renewed momentum once normal trading volumes return. He identified US$5,000 per ounce as a medium-term target for gold, while silver’s long-term target remains at US$75.

Heightened tensions between the United States and Venezuela have boosted demand for gold as a safe-haven asset. Analysts also point to expectations of further U.S. rate cuts and signals of potential monetary policy easing by the Federal Reserve as key drivers.

Gold has risen more than 70% so far this year, remaining highly sensitive to geopolitical developments and shifts in interest rate expectations.

— Agencies