Gold price tops $4,500 for first time

Gold rose above $4,500 an ounce for the first time on Wednesday as escalating tensions in Venezuela and expectations for more US rate cuts continue to lift demand for the safe-haven metal.

Spot gold set a new all-time high of $4,524.68 an ounce during the early hours of trading, before dropping back down to the $4,450 level as some traders took profits. US gold futures traded as high as $4,555.10 an ounce, before falling back down to near $4,500.

Still, gold remains well on track to record its biggest yearly gain since 1979, at above 70%. The rally has largely been underpinned by robust central bank purchases and inflows into exchange-traded funds. US President Donald Trump’s aggressive trade policies have also fueled gold’s rally, especially during the record-breaking runs earlier this year.

John Feeney of Sydney-based gold dealer Guardian Vaults said the dominant drivers for gold right now are the combination of sustained physical demand and renewed sensitivity to macro risk.

“We’re seeing momentum reinforced rather than capped, which suggests underlying conviction rather than purely speculative froth,” he told Bloomberg in an earlier note.

Underscoring this demand, bullion bounced back quickly after a retreat from its previous peak of $4,381 in October, when the rally was seen as overheated. Many believe gold is now positioned to carry these gains into next year. Goldman Sachs is among several banks to predict prices will keep rising in 2026, issuing a base-case scenario of $4,900 an ounce.

Silver, platinum at records

Other precious metals have also benefited from the drivers behind gold’s rise. Silver, in particular, has been setting new highs alongside gold, and is rising at an even faster pace.

On Wednesday, the white-colored metal hit a record of $72.70 per ounce, taking its yearly gains to over 150% — more than double that of gold. The latest rally was buoyed by speculative inflows and lingering supply dislocations across major trading hubs following a historic short squeeze in October.

London’s vaults have seen significant inflows since then, but much of the world’s available silver remains in New York as traders await the outcome of a US Commerce Department probe on whether critical minerals imports threaten national security, which could lead to tariffs or trade restrictions on the metal.

“Unlike previous silver rallies driven primarily by leverage, this move is being underwritten by real demand for metal, which is changing how the market behaves around key price thresholds,” said Feeney. “I can’t see an end to the trend just yet.”

Platinum has also been building momentum, now trading above $2,300 an ounce for the first time since Bloomberg began compiling data in 1987. Buoyed by tight supplies and historically elevated borrowing costs, the metal — used in the automotive and jewelry sectors — rose for a 10th straight session, its longest winning streak since 2017.

(With files from Bloomberg)