Gold hits record as investors seek haven from rising US-Venezuela tensions

Gold prices climbed to a record high on Tuesday, moving closer to the $ 4,500-per-ounce mark, as investors sought refuge in the precious metal amid rising tensions between the US and Venezuela.

Gold futures rose 1.1% to $4,519.30 an ounce, while spot prices gained 1.6% to $4,482.54 at the time of writing, after touching an intraday record of $4,497.55.

“US-Venezuelan tensions are keeping gold on the radar for investors as an uncertainty hedge,” said Tim Waterer, chief market analyst at KCM Trade, adding that gold had surged this week as part of a broader repositioning as US interest rates were expected to ease further.

Waterer said investors continued to view precious metals as an effective means of diversifying their portfolios and preserving value, adding that “I don’t think we are at the high watermark yet for gold or silver.”

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US president Donald Trump last week announced a “blockade” of oil tankers under sanctions entering and leaving Venezuela.

Gold also drew support from reports that Trump could appoint a new Federal Reserve chair by early January, with markets pricing in two interest rate cuts next year amid expectations of a more dovish policy stance.

The precious metal has surged more than 70% this year.

Oil prices edged lower on Tuesday as traders balanced heightened geopolitical risks against weak underlying fundamentals, after the US indicated it could sell Venezuelan crude it has seized. Meanwhile, Ukrainian attacks on Russian vessels and port infrastructure raised concerns about potential supply disruption.

Brent crude futures were little changed at $61.56 a barrel, while West Texas Intermediate slipped 0.1% to $57.97.

“Crude oil markets are grinding through the final weeks of 2025 with prices largely subdued, reflecting a tug-of-war between persistent bearish fundamentals and intermittent bullish headlines,” said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, in a note.

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She added that while prices have staged modest rebounds amid geopolitical developments during 2025, the broader picture continued to be shaped by sluggish demand and ample supply. “Overall, the trend remains weak as structural supply concerns eclipse short-lived risk-off rallies.”

Markets remain cautious as investors weigh geopolitical uncertainties against forecasts of plentiful supply in early 2026.

Sterling traded higher against its major peers on expectations that the Bank of England will pursue a gradual path of monetary easing in 2026, with the pound rising to its strongest level against the dollar since early October.

The currency gained 0.3% against the dollar to $1.3504 and rose 0.1% versus the euro to €1.1456.

The US dollar index (DX-Y.NYB), which measures the greenback against a basket of six major currencies, fell 0.4% to 97.93 as the dollar came under selling pressure. Traders are increasingly confident that the Federal Reserve will deliver at least two interest rate cuts in 2026.

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Last week, the Bank of England cut interest rates by 25 basis points to 3.75% in a close vote, and said rates were on a gradual downward path. Four of the nine members of the Monetary Policy Committee dissented amid a stronger outlook for wage growth, a scenario that could keep inflation persistently above the central bank’s 2% target.

In equities, the FTSE 100 (^FTSE) was higher on Tuesday morning, up 0.1% to 9,876 points. For more details on market movements, check our live coverage here.

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