Gold prices continued their strong upward trend on Tuesday, nearing record highs once again, driven by a renewed wave of global demand for safe-haven assets. This buying momentum comes amid the complexities of the global geopolitical landscape following the announcement of the arrest of the Venezuelan president, coinciding with increasing market bets on the US Federal Reserve cutting interest rates.
Gold and safe haven performance
In spot trading, gold rose 0.3% to $4,461.09 an ounce by 11:35 GMT. This increase builds on the previous session's gains of nearly 3%, reflecting investor anxiety and a desire to hedge against potential political and economic risks.
Gold had recorded a historic peak of $4,549.71 on December 26, concluding an exceptional year with annual gains of 64%, the best performance for the precious metal since 1979. Analysts indicate that gold's surpassing of the $4,000 barrier reflects a structural change in the global financial system and the erosion of confidence in traditional paper currencies in light of successive crises.
The impact of geopolitical tensions and interest
The arrest of Venezuela's president is a pivotal event that has cast a shadow over markets, as such events raise concerns about regional instability in Latin America and its impact on energy supplies and the global economy. Historically, gold prices have flourished during periods of political turmoil and war, as it is seen as a store of value unaffected by the direct actions of governments.
On the other hand, US monetary policy plays a crucial role; expectations of interest rate cuts reduce the opportunity cost of holding gold, which does not yield returns, making it more attractive compared to bonds and treasury bills, while simultaneously putting pressure on the dollar index.
Historic surge in silver and other metal prices
The rally wasn't limited to gold; silver also saw a remarkable performance, rising 2.4% to $78.31 per ounce. Silver had reached an all-time high of $83.62 on December 29, 2025. Silver achieved record annual gains of 147% in 2025, fueled by dual demand: as a safe-haven investment and as a vital component in modern industries such as solar energy and electronics, thus boosting its market value.
In a related context, platinum rose by 2.3% to $2,323.15 an ounce, after reaching a historic high of $2,478.50 last Monday. Palladium also climbed by 1.7% to $1,736.26 an ounce, confirming that the upward trend encompasses the entire basket of precious metals amid optimism that this momentum will continue.
