Gold price sets new record near $4,500, silver price touches $70

Gold and silver prices both set new all-time highs on Tuesday as persistent geopolitical uncertainty continues to keep safe-haven demand elevated.

Spot gold rose as much as 1.2% to a new record of just below $4,500 an ounce, extending gains from its biggest one-day jump in over a month. Silver jumped by as much as 1.8% to trade above $70 an ounce for the first time.

The year-end rally in precious metals has been fueled by increased expectations of more US Federal Reserve rate cuts in the coming year, which would provide a tailwind for non-yielding assets. The metals’ haven appeal has also been amplified by rising geopolitical tensions, particularly in Venezuela, where the US has blockaded oil tankers as it ratchets up pressure on the government of President Nicolás Maduro.

“Geopolitical frictions have re-entered the narrative,” said Ahmad Assiri, a strategist at Pepperstone Group, citing the oil tanker seizures. “These developments, while not triggering outright risk-off moves, undoubtedly add to the background demand for gold as a must-have hedge.”

Year of precious metals

With another record set, gold has now gained more than 70% this year and is on track for its best annual performance since 1979. The blistering rally has been underpinned by strong central-bank purchases and inflows into exchange-traded funds.

US President Donald Trump’s aggressive moves to reshape global trade — as well as his threats to the Fed’s independence — added fuel to the bull run earlier this year, which ended in gold prices reaching as high as $4,381 per ounce in October.

Bullion has since bounced back quickly after a retreat, and is now positioned to carry these gains into next year, according to analysts from major banks. Goldman Sachs Group, for example, is among those to predict gold to keep rising n 2026, issuing a base-case scenario of $4,900 an ounce with risks to the upside.

Meanwhile, silver’s rally of around 140% this year has been even more spectacular than gold’s, with its most recent advance 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.

“Silver is responding to many of the same macro forces but with added intensity due to its own supply-demand dynamics. Tight supply conditions, combined with strong investment and speculative interest, are magnifying price moves as silver approaches the $70 level,” Pepperstone’s Assiri said.

(With files from Bloomberg and Reuters)

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