Gold prices continued to break records during Wednesday’s Asian trading as the United States raised its pressure on Venezuela’s government.
Spot gold was up 1.5% to US$4,498.70 per ounce by 3:50 pm AEDT (4:50 am GMT), having broken the $4,500 barrier for the first time earlier in the session. Gold has advanced around 70% across 2025 to date.
Silver also rose 5.5% to fresh highs of $72.33, and is up nearly 150% year-to-date. Both metals are set for their best performance since 1979.
Gold’s rally has been supported by geopolitical tensions and a weakening U.S. dollar. The U.S. dollar index is down 0.6% in the last five days, and has slid 2.3% over the past month.
“The precious metals complex has rallied sharply into Christmas as the dollar weakens,” wrote SP Angel analysts.
“We see gold rising towards $5,000/oz next year on a continuation of Central bank buying and pressure on the U.S. dollar.”
Tensions between the U.S. and Venezuela have also escalated in recent days. The U.S.’ pursuit of the sanctioned oil tanker Bella 1 in international waters near Venezuela has been ongoing since Sunday (Monday AEDT).
U.S. President Donald Trump called for a blockade of sanctioned tankers entering or exiting Venezuela last week, and the U.S. has seized two tankers so far this month. In response, Venezuela has passed a law requiring up to 20 years in prison for those who assist with blockades or acts of piracy.
The Bella 1 has refused to be boarded by the U.S. Coast Guard, per Reuters. The Coast Guard is now waiting for a specialist maritime response team to arrive before seizing the tanker.
