Are Gold and Silver Setting Record Highs Amid US‑Venezuela Tensions and Fed Rate Cut Expectations?
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Synopsis
Gold and silver prices have surged to record levels, with gold surpassing $4,500 per ounce amidst rising US-Venezuela tensions. Investors are reacting to anticipated US rate cuts and geopolitical risks, making precious metals attractive assets. With silver also reaching all-time highs, the market's dynamics reflect a complex interplay of supply, demand, and global uncertainties.
Key Takeaways
- Gold prices surpassed $4,500 per ounce.
- Silver reached a record high of Rs 2,23,593 per kg.
- Expectations of US rate cuts are influencing market dynamics.
- Geopolitical tensions are driving safe-haven investments.
- Both metals are on track for their strongest annual performance in decades.
Mumbai, Dec 24 (NationPress) Gold prices have seen a rise of more than 0.5 percent, reaching unprecedented heights on Wednesday, surpassing $4,500 per ounce due to increasing tensions between the US and Venezuela, along with anticipations of further US rate cuts in the upcoming year.
MCX gold February futures increased by 0.44 percent, trading at Rs 1,38,485 per 10 grams, while MCX silver experienced a notable jump of 1.79 percent, reaching a record high of Rs 2,23,593 per kilogram (as of 10.05 am).
The dollar index fell by 0.20 percent during this session, making gold more affordable in foreign currencies.
"Spot gold broke through the crucial $4,500 per ounce barrier, driven by safe-haven demand and expectations for rate cuts," stated Devarsh Vakil, Head of Prime Research at HDFC Securities. "Silver also set a new record, soaring beyond $72."
In December alone, silver has appreciated by 24 percent and 135 percent year-over-year, indicating strong supply-demand dynamics and significant safe-haven investments, added Vakil.
Year-to-date, domestic spot gold prices have surged more than 76 percent, while international gold prices have risen over 70 percent in 2025, positioning them for their strongest annual performance since 1979.
Meanwhile, platinum has traded above $2,300 an ounce for the first time in decades, and palladium has also seen gains.
This month, the US Coast Guard seized a supertanker under sanctions carrying Venezuelan oil and attempted to intercept two additional Venezuela-related vessels over the weekend, escalating tensions.
The assassination of a Russian army general in a bombing on Monday further heightened geopolitical risks, bolstering gold and silver prices.
According to analysts, gold has support at the Rs 1,35,550-Rs 1,34,710 range, while silver has support at the Rs 2,11,150-Rs 2,10,280 range.
Factors such as aggressive central bank purchases, expectations of US Fed rate cuts, worries over the impact of US tariffs, geopolitical tensions, and strong inflows into gold and silver ETFs have driven prices this year.
Point of View
I observe that the surge in gold and silver prices reflects broader economic concerns. The geopolitical tensions and potential rate cuts signal a significant shift in market dynamics. Investors seeking stability amidst uncertainty will find these precious metals appealing. However, it is crucial to remain informed about the implications of these movements on the global economy.
NationPress
04/01/2026
Frequently Asked Questions
Why are gold and silver prices rising?
Gold and silver prices are rising due to escalating geopolitical tensions, particularly between the US and Venezuela, as well as expectations for future US rate cuts.
What factors influence gold prices?
Gold prices are influenced by supply and demand dynamics, geopolitical tensions, central bank policies, and overall market sentiment.
How much have gold prices increased this year?
Gold prices have surged over 70 percent year-to-date, marking their strongest annual performance since 1979.
