Pedro Goncalves writes:
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.”
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.