Gold breaks records and reaches around $4,500 per ounce

Gold and silver prices once again reached historic highs, as refuge assets in the face of uncertainty arising from the crisis between the United States and Venezuela and the possibility that the Federal Reserve (Fed) will cut interest rates again.

Spot gold rose 2.3 percent to $4,436.29 per ounce, after hitting a peak of $4,440.21. Gold futures in the United States for delivery in February gained almost 2 percent, to finish at $4,471.1.

“Short-term support comes from rising geopolitical tension between the United States and Venezuela (…) Gold prices have been hovering just below all-time highs in recent sessions, so this looks like a simple break in upward momentum after the recent bullish consolidation, in holiday markets with less volume,” explained a Nemo Money analyst.

“The obvious target for those betting on the rise of gold is $5,000 next year,” he added.

The bullion has accumulated an increase of close to 69 percent so far this year, its largest annual advance since 1979, driven by strong purchases by central banks, safe haven flows and lower rates.

According to Neil Wilson of Saxo Markets, this rise in prices also responds to the weak employment and inflation figures published last week in the United States, which reinforce the expectation that the Fed will cut interest rates again next year.

Copper prices also reached a record level due to speculative purchases.

Three-month benchmark copper CMCU3 on the London Metal Exchange traded slightly higher at $11,883 a metric ton, after hitting an all-time high of $11,996.

Copper has risen 36 percent this year on the London Metal Exchange, largely due to concerns that problems at mines could lead to deficits in 2026.