Gold price continues to soar! Rates jump record high of $4,467; US- Venezuela oil tensions fuel the rally

Gold prices surged to a fresh on Tuesday as investors flocked to the safe-haven metal amid rising geopolitical tensions linked to US actions against vessels carrying Venezuelan oil.

At the same time, silver also hovered close to historic highs, extending a strong rally across precious metals.

Spot gold was up 0.5% at $4,467.66 an ounce by 0041 GMT, after touching an intraday record of $4,469.52 earlier in the session, Reuters reported. US gold futures for February delivery gained 0.74% to $4,502.30 an ounce. The rally comes as the United States intensified efforts to seize tankers associated with Venezuelan oil shipments, adding to global market uncertainty.




Silver edged 0.19% higher to $69.15 an ounce, after hitting an all-time high of $69.44 on Monday. Gold has now risen 70% so far this year and crossed the $4,400 level for the first time a day earlier, supported by geopolitical and trade tensions, sustained central bank buying and expectations of lower US interest rates next year. Silver has surged 140% year-to-date, far outpacing gold, and came just shy of the $70 mark in the previous session.

Tensions escalated after the US Coast Guard this month seized a sanctioned supertanker carrying Venezuelan oil and attempted to intercept two more Venezuela-linked vessels over the weekend, according to US authorities. One of the ships was empty and under US sanctions, while the other was an unsanctioned, fully loaded tanker headed for China.

Market sentiment has also been shaped by expectations of monetary easing. Traders are continuing to price in two interest rate cuts by the US Federal Reserve next year. Fed governor Christopher Waller, who is among those being considered as a potential successor to Fed Chair Jerome Powell, said last week that the central bank still has room to cut rates. Non-yielding assets such as gold typically benefit in a lower interest rate environment, Reuters reported.

Adding to the bullish momentum, the US dollar slipped to near one-week lows against a basket of major currencies, making dollar-priced bullion more attractive to overseas buyers. Elsewhere in the metals market, spot platinum climbed 1.1% to $2,143.70 an ounce, marking a 17-and-a-half-year high, while palladium rose 1.42% to $1,784.30 an ounce, close to a three-year peak.

Get an chance to win ₹5000 Amazon Voucher by taking part in India's Biggest Habit Index! Take the survey here