Gold Climbs Above $4,500 for First Time on Geopolitics, Rates

Silver and platinum also pushed to record levels.

Spot gold rose as much as 0.8%, extending a three-session climb.

The metal drew renewed safe-haven demand after the United States blockaded oil tankers linked to Venezuela.

At the same time, traders are increasingly positioning for another round of Fed easing in 2026 after three consecutive cuts, a backdrop that typically favours non-yielding assets such as bullion.

The rally has been striking: gold is up roughly 70% this year, while silver has more than doubled, putting both on course for their strongest annual performances since 1979.

Elevated central-bank buying and sustained inflows into exchange-traded funds have helped underpin the move.

According to World Gold Council data, holdings in gold-backed ETFs rose in every month this year except May.

ETF demand has also driven the latest leg higher.

Holdings in State Street’s SPDR Gold Trust, the largest precious-metals ETF, are up by more than 20% this year.

Earlier in the year, the run-up was fuelled by US President Donald Trump’s trade agenda and heightened concern over political pressure on the Fed.

Investors have also leaned into what some market participants call the “debasement” trade, reducing exposure to sovereign bonds and their currencies amid fears that rising debt burdens will erode long-term value.

Gold’s resilience has added to bullish sentiment.

After pulling back from a previous peak of US$4,381 an ounce in October, when the rally was widely viewed as overheated, the metal rebounded quickly and has now broken to a new high.

Several banks expect the upswing to continue into 2026; Goldman Sachs, for example, has flagged a base-case target of around US$4,900 an ounce, with upside risks.

Silver extended its own breakout after climbing above US$70 an ounce for the first time on Tuesday, rising again to set a fresh record near US$72.

Its latest gains have been amplified by speculative inflows and persistent supply disruptions across major trading centres following a short squeeze in October.

While London vaults have seen notable inflows since then, much of the readily available stock remains in New York as markets await the outcome of a US Commerce Department investigation into whether imports of critical minerals pose national-security risks, an inquiry that could open the door to tariffs or other restrictions.

Platinum jumped to a new record as well, trading above US$2,300 an ounce for the first time after a roughly 4% spike.

Tight supply conditions and unusually high borrowing costs have supported the metal, which is widely used in the automotive and jewellery industries.

Platinum has now risen for 10 straight sessions, its longest winning streak since 2017, and is up about 160% this year, the biggest annual gain since Bloomberg began tracking the data in 1987.

The London market is showing signs of tightening as banks shift metal to the US to hedge potential tariff risk, while disruptions in South Africa have contributed to expectations of a third consecutive annual supply deficit.

As of 8.54am in Singapore, spot gold was up 0.6% at US$4,513.87 an ounce.

Silver gained 0.6% to about US$71.89, platinum climbed 3.3% to around US$2,365.72, and palladium was also up more than 3%.

The Bloomberg Dollar Spot Index slipped 0.1%.

Bloomberg