BY COMFORT OGBONNA
Gold prices surged more than 2% on Monday to set a new all-time high, buoyed by a rush into safe-haven assets as tensions between the United States and Venezuela intensified.
The rally extended a powerful run for the precious metal this year, with investors seeking protection amid rising geopolitical risks and uncertainty over future U.S. monetary policy. Silver also joined the advance, touching a record peak of its own as strong fundamentals continued to underpin prices.
Spot gold climbed 2.2% to $4,434.26 per ounce by 1:54 p.m. ET, after earlier reaching an intraday record of $4,441.92. U.S. gold futures for February delivery closed 1.9% higher at $4,469.40 per ounce, reflecting sustained bullish momentum across the market.
Analysts noted that heightened geopolitical concerns have provided near-term support, pushing prices decisively above previous resistance levels following a period of consolidation in relatively thin holiday trading volumes. Some market watchers now see $5,000 per ounce as a realistic upside target for gold in the coming year if current trends persist.
The latest surge comes after U.S. President Donald Trump announced a “blockade” targeting all oil tankers under sanctions entering or leaving Venezuela, a move that has raised fears of broader disruptions and heightened regional instability. Such developments have reinforced gold’s appeal as a store of value during times of political and economic stress.
Additional support for bullion has come from speculation surrounding leadership changes at the U.S. Federal Reserve. Reports suggest Trump could nominate a new Fed chair as early as January, ahead of Jerome Powell’s expected retirement in mid-2026. Markets are closely watching the situation, as investors anticipate that a new chair could be more closely aligned with Trump’s calls for further interest rate cuts, a scenario that would typically benefit non-yielding assets such as gold.
Gold has long been regarded as a safe-haven asset, and its performance this year underscores that role. Prices are up more than 69% so far, marking the metal’s strongest annual gain since 1979. The rally has been driven by a combination of heavy central bank buying, sustained safe-haven inflows, and a global environment of lower interest rates.
Silver prices also pushed higher, rising 1.9% to $68.40 per ounce after touching a record high of $69.44 earlier in the session. The metal has gained more than 136% this year, supported by a persistent supply-demand imbalance and strong import demand from India during its festive season. Analysts point to these structural factors as key drivers behind silver’s strength and expect prices to remain elevated, with some forecasting an average of around $57 per ounce in 2026.
Meanwhile, the U.S. dollar edged lower against a basket of major currencies, making dollar-denominated precious metals more attractive to overseas buyers and adding further momentum to the rally. Other metals also benefited from the bullish sentiment, with platinum jumping 5.4% to $2,079 per ounce, its highest level in more than 17 years, while palladium rose 2.1% to $1,748.84, reaching a near three-year high.
Overall, the strong performance across the precious metals complex highlights growing investor caution and a renewed focus on assets seen as reliable hedges against uncertainty.
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