Bullion soars: Gold, silver hit new highs as global tensions rise

Gold jumped more than 2 per cent to a record high on Monday, powered by safe-haven flows as US-Venezuela tensions flared, ‍while silver also touched an all-time ​peak.

Spot gold was up 2.3 per cent  at $4,436.29 per ounce by 11:23 a.m. ET (1623 GMT) after hitting an all-time high of $4,440.21 earlier. US gold futures for February delivery climbed nearly 2 per cent to $4,471.1 per ounce.

"Support in the near-term is coming from raised geopolitical tensions between the US and Venezuela... Gold prices have been hovering just below record highs in ​recent sessions, so this looks like a simple textbook momentum break to the upside after recent bullish consolidation, in holiday markets with less volume," said an analyst at Nemo.Money.

"The obvious target for gold bulls is $5,000 next year."

US President Donald Trump last week announced a "blockade" of all oil tankers under sanctions entering and leaving Venezuela.

In other news seen as supportive for gold, Trump could name a new Fed Chair by early January, replacing Jerome Powell, who is set to retire in mid-2026, CNBC reported, as markets watch closely amid expectations the new chair may align with Trump's push for further rate cuts.

Gold as a safe-haven asset tends to thrive during periods of geopolitical and economic uncertainty. Gold has surged more than 69 per cent  this year in its biggest annual ‌rise since 1979, fuelled by strong central bank ​buying, safe-haven flows, and lower interest rates.

Spot silver was up 2.1 per cent  at $68.55 after hitting a new high of $69.44. Prices are up 136 per cent so far this year.

The drivers behind silver's recent highs have centred on the persistent supply-demand deficit and import demand growing ‍in India over its festive period, said Macquarie strategists, adding that they expect silver to average $57 an ounce in 2026.

The US dollar edged lower against a ‍basket ‌of other major ​currencies, making dollar-priced bullion more affordable for overseas buyers.

Platinum ‍jumped 4.8 per cent to $2,067, hitting its highest in more than 17 years, while palladium climbed ‍1.8 per cent ‍to $1,745.18, hitting a near ‌three-year high.

(Reporting by Sherin Elizabeth Varghese and Sarah Qureshi in BengaluruEditing by Kirsten Donovan and Frances Kerry)