Gold prices surged to a new record during early Asian trading on Tuesday, extending their recent rally as investors sought safe-haven assets amid rising geopolitical tensions between the United States and Venezuela.
Thin liquidity caused by year-end holidays amplified price movements across precious metals. Gold and silver both reached record levels on Monday, while platinum and palladium climbed to multi-year highs, reflecting broad strength across the metals complex.
Spot gold was last trading 0.4% higher at $4,459.02 an ounce by 11:00 ET (16:00 GMT), after touching an all-time high of $4,497.82 earlier in the session. February gold futures also advanced 0.4% to $4,486.00 an ounce.
US–Venezuela tensions fuel safe-haven demand
Demand for gold and other defensive assets was lifted by escalating tensions between Washington and Caracas. Reports indicated the U.S. Navy attempted to seize a third oil tanker linked to Venezuela, intensifying concerns over supply disruptions and regional instability.
U.S. President Donald Trump continued his tough rhetoric against Venezuela and its leader Nicolás Maduro, warning of a potential naval offensive. Trump also said the United States would retain oil seized from Chinese tankers off Venezuela’s coast.
Geopolitical stress was further heightened by developments in the Middle East, where Iran conducted missile drills. Tensions increased after reports suggested Israel planned to brief Washington on potential future strikes against Tehran.
Fed easing expectations support bullion
Gold’s rally was also supported by softer U.S. inflation data. Last week’s consumer price index came in below expectations, strengthening market bets that the Federal Reserve will cut interest rates multiple times in 2026 to support economic growth.
Lower interest rate expectations reduce the opportunity cost of holding non-yielding assets such as gold, boosting its appeal relative to interest-bearing investments. A weaker U.S. dollar and subdued Treasury yields added further support, with thin holiday trading exaggerating price swings as investors shifted toward defensive assets.
Precious metals extend gains
Silver and other metals followed gold higher, posting fresh highs. Spot silver jumped more than 1.1% to around $69.82 an ounce. Platinum surged 4.9% to $2,234.78, holding near a more than 17-year peak.
In industrial metals, benchmark copper futures on the London Metal Exchange rose 0.4% to $11,925 per ton, while U.S. copper futures gained 0.7% to trade at $5.55.
