 "Gold crosses $4,500/oz milestone for first time; bullion up 70% in 2025")
Gold rose to an all-time high above $4,500 per ounce on escalating tensions in Venezuela and expectations for more US rate cuts. Spot gold climbed nearly 1 per cent, building on three consecutive days of gains, before pulling back to trade little changed. Frictions in Venezuela, where the US has blockaded oil tankers, have added to the metal’s haven appeal. Traders are also betting the Federal Reserve will lower borrowing costs further next year, which would be a tailwind for non-yielding precious metals.
As of 6.15 pm Indian Standard Time (IST), gold has been trading at $4490.68/oz. Gold has gained nearly 70 per cent this year, heading for its best annual performance since 1979. The rally in gold has been underpinned by elevated central-bank purchases and inflows into exchange-traded funds. Total holdings in gold-backed ETFs have risen every month this year except May, according to World Gold Council data.
US President Donald Trump’s aggressive move to reshape global trade — as well as his threats to the Fed’s independence — added fuel to the bull run earlier this year. Investors have also been spurred in part by the so-called debasement trade — a retreat from sovereign bonds and the currencies they are denominated in over fears their value will erode over time due to ballooning debt levels.
“The dominant drivers for both gold and silver right now are the combination of sustained physical demand and renewed sensitivity to macro risk,” said John Feeney, business development manager at Guardian Vaults, a Sydney-based bullion dealer. “We’re seeing momentum reinforced rather than capped, which suggests underlying conviction rather than purely speculative froth.”
Underscoring this demand, gold bounced back quickly after a retreat from its previous peak of $4,381 per ounce in October, when the rally was seen as overheated. It is now positioned to carry these gains into next year. Goldman Sachs Group, Inc. is among several banks to predict prices will keep rising in 2026, issuing a base-case scenario of $4,900 an ounce
with risks to the upside.
Heavy ETF buying has also been a major driver of the latest surge. Holdings in State Street Corp.’s SPDR Gold Trust, the biggest precious-metals ETF, have risen by more than a fifth this year. Traders are also watching developments in Venezuela, where Trump has warned President Nicolás Maduro not to challenge the US and vowed to keep oil seized from a supertanker.
Silver, platinum surge to new peaks
Silver — which traded above $70 per ounce for the first time on Tuesday — advanced as much as 1.8 per cent to set a record of $72.70. Meanwhile, platinum peaked at $2,377.50 before paring gains to close at $2,312.70.