Gold and silver: Amid US-Venezuela tensions and anticipation for a Fed rate decrease reach all-time highs

Gold and silver: Due to rising US-Venezuela tensions and anticipation for further US rate cuts in the next year, gold prices soared more than 0.5% to record highs on Wednesday, above $4,500 per ounce.

As of 10.05 am, MCX silver jumped 1.79 percent to a record high of Rs 2,23,593 per kilogram, while MCX gold February futures increased 0.44 percent to Rs 1,38,485 per 10 grams.

Gold became less expensive in foreign currencies as the dollar index fell by 0.20 percent throughout the session.

“Driven by demand for safe havens and prospects of a rate drop, spot gold climbed beyond the crucial $4,500 per ounce milestone. Silver jumped beyond $72 and to a new all-time high, according to Devarsh Vakil, Head of Prime Research at HDFC Securities.

Due to strong safe-haven flows and tight supply-demand dynamics, silver has increased by 135 percent year over year and by 24 percent in December, Vakil said.

International gold prices have risen more than 70% in 2025 and domestic spot gold prices have risen more than 76% so far, setting them up for their best yearly return since 1979.

For the first time in many decades, the price of platinum surpassed $2,300 per ounce, while palladium also saw increases.

Tensions increased over the weekend as the US Coast Guard attempted to stop two additional ships connected to Venezuela and captured a super tanker transporting Venezuelan oil under sanctions this month.

Additionally, Monday’s bombing of a Russian army general bolstered gold and silver prices and raised geopolitical risk.

Analysts say that silver has support around Rs 2,11,150-Rs 2,10,280 and gold has support at Rs 1,35,550-Rs 1,34,710.

This year’s gold and silver prices were driven by aggressive central bank purchasing, anticipation of US Fed rate reduction, worries about the effects of US tariffs, geopolitical tensions, and strong inflows into gold and silver exchange-traded funds (ETFs).