Gold prices hit record high of over $4,500 per ounce on safe-haven demand

Gold prices hit a record high on Tuesday, just above $4,500 an ounce, as demand for safe-haven assets rose amid heightened tensions between the United States and Venezuela. Silver also hit a new record high.

Spot gold prices rose 0.9% to $4,486.55 an ounce, after hitting a record high of $4,497.55 earlier in the session. U.S. gold futures for February delivery rose 1.1% to $4,519.20 an ounce.

Silver also rose, with spot prices rising 0.8% to $69.56 an ounce, after hitting a record high of $69.98. Silver has gained more than 141% since the beginning of the year, outpacing gold in terms of growth amid supply shortages, high industrial demand and active investment inflows.

According to Pepperstone senior strategist Michael Brown, the market may enter a phase of moderate consolidation during the holiday season due to reduced liquidity. At the same time, he predicts a resumption of active growth after the return of full-fledged trading volumes. In the medium term, he calls the natural target for gold at $5,000 per ounce, while for silver the long-term target remains at $75.

The aggravation of relations between the US and Venezuela supports demand for gold as a defensive asset. According to analysts, investors are increasingly choosing precious metals against the backdrop of expectations of further reductions in interest rates in the US.

Additional support for the market was provided by statements about possible personnel changes in the Federal Reserve and signals of easing monetary policy. Gold has risen more than 70% since the beginning of the year, remaining sensitive to geopolitical news and changes in market expectations for rates.

Tags: prices, Gold