Gold exceeded $4,500 per ounce for the first time in history

The price of gold rose to an all-time high of over $4,500 an ounce amid escalating tensions in Venezuela and expectations of further US rate cuts. Silver and platinum prices also reached record highs, reports Bloomberg.

The spot price of gold has risen by almost 1% and is now in its third consecutive day of gains. Tensions surrounding Venezuela, particularly the US blocking of oil tankers, have increased interest in gold.

In addition, traders expect that after three consecutive rate cuts, the Federal Reserve may make borrowing cheaper again next year, which traditionally supports precious metals that do not yield interest income.

This year, gold has risen by more than 70%, and silver by approximately 150%. Both metals are approaching their best annual results since 1979. According to the World Gold Council, the volume of assets in gold-backed funds has grown almost every month throughout the year, with the exception of May.

The tough steps taken by the US president were an additional factor in the growth Donald Trump regarding the restructuring of global trade, as well as his statements that call into question the independence of the Federal Reserve.

In addition, the market was fueled by so-called "sell-off trading": investors are abandoning sovereign bonds and currencies, fearing that their real value will decrease over time due to rising debts.

"The dominant drivers for both gold and silver right now are a combination of solid physical demand and a renewed sensitivity to macro risks. We are seeing the momentum build rather than plateau, which indicates underlying conviction rather than purely speculative froth," said John Feeney, business development manager at Guardian Vaults, a Sydney bullion dealer.

Finley noted that, unlike previous periods of silver price increases, which were mostly driven by leverage, the current price increase is supported by real demand for the metal. According to him, this changes the market's behavior near key price levels, and he currently sees no signs of this trend ending.

• On October 8, the price of gold for the first time in history exceeded the $4,000 per ounce markIts value has increased by more than 50% since the beginning of the year.
• October 14, the price of silver set a new historical record, exceeding $53 per ounce in London trading.
• October 21, gold and silver sharply lost in value. The decline was attributed to several factors: the strengthening of the dollar, signals about a possible resumption of trade negotiations between the US and China, and a technically "overheated" market.
• December 22 spot price of gold It increased by 1.5% to $4404.12 per ounce.