Gold Tops $4,500, Heads for Best Year Since 1979
Rate-cut expectations at the Fed are lifting safe-haven demand in the face of heightened U.S.–Venezuela tensions.
Overview
- February Comex futures traded near $4,516 per ounce on Wednesday morning after breaking above $4,500 in Asian dealings.
- Gold has climbed more than 70% in 2025, putting it on track for its strongest annual performance since 1979.
- Analysts tie the surge to U.S.–Venezuela strains, citing a December 16 blockade of sanctioned tankers and President Trump’s comment urging Nicolás Maduro to leave power.
- Investors are positioning for Federal Reserve rate cuts discussed for 2025–2026 after softer U.S. labor and inflation readings, which lowers the opportunity cost of holding gold.
- The rally broadened across metals as silver and copper set records and platinum reached its highest level since May 2008.