Continue to reach record highs! The price of gold surpassed 4,500 US dollars for the first time!

The Zhitong Finance App learned that due to the escalation of tension in Venezuela and market expectations that the Federal Reserve will cut interest rates further next year, the price of gold once again hit a record high, breaking the 4,500 US dollar mark per ounce for the first time. On Wednesday, as of press release, spot gold rose 0.57% to $4,510.46 an ounce, continuing the previous three-day trend and reaching a new high on the 51st trading day of this year. At one point, silver rose 0.6% to a record high of $71.856 per ounce. The price of platinum topped $2,300 an ounce for the first time, according to data compiled since 1987. Palladium prices have also risen.

Traders are betting that the Federal Reserve will reduce borrowing costs again next year, thereby creating a low interest rate environment, which is beneficial to precious metals that do not generate profits. Meanwhile, over the past week, as geopolitical tension intensified, particularly the situation in Venezuela, the safe-haven appeal of gold was further strengthened. The United States has blocked Venezuelan oil tankers, increasing pressure on the government of Venezuelan President Nicolás Maduro.

Since this year, the price of gold has soared by more than 70%. This is mainly due to the increase in gold purchases by major central banks and the massive inflow of capital into gold ETFs. Gold is expected to have its best annual performance since 1979. According to data from the World Gold Council, with the exception of May, the total amount of gold ETF holdings increased every month this year.

The price of gold fell after hitting an earlier high of 4,381 US dollars in October. The rally at that time was thought to be too crowded and overheated, then quickly rebounded. Currently, the gold price is expected to continue its rise until next year. Goldman Sachs and many other banks predicted that the price of gold would continue to rise in 2026, and gave a basic forecast of 4,900 US dollars per ounce, while pointing out that there is an upward risk.