By: Economy Middle east

Gold prices surged to a new record high on Tuesday, edging closer to the $4,500 mark as investors sought the safety of the precious metal amid rising tensions between the U.S. and Venezuela. Silver also climbed to a new all-time high.

In the UAE, gold rates posted notable gains, with 24-carat gold rising AED7 to AED540 and 22-carat gold gaining AED6.25 to AED500. Additionally, 21-carat gold surged AED6.25 to reach AED479.5, while 18-carat gold edged up AED5.25 to AED411.

Meanwhile, 14-carat gold gained AED4 to AED320.5.

Globally, spot gold rose 1.09 percent to $4,482.66 an ounce by 5:38 GMT, after touching a record $4,497.55 earlier in the session. Meanwhile, U.S. gold futures for February delivery jumped 0.96 percent to $4,512.30.

Geopolitical and economic uncertainty drives gold’s rally

Gold prices have climbed sharply this week as part of a broader shift in investor positioning amid expectations that U.S. interest rates will ease further. At the same time, rising tensions between the U.S. and Venezuela have kept the metal in focus as a hedge against uncertainty.

U.S. President Donald Trump last week declared a blockade on all sanctioned oil tankers entering or departing Venezuela. Gold prices also drew support from reports that Trump may appoint a new Federal Reserve Chair as early as January, as markets price in two interest rate cuts next year on expectations of a more dovish policy outlook.

Bullion, a safe haven during geopolitical and economic uncertainty, has jumped over 70 percent this year, driven by a combination of heightened geopolitical risks, expectations of interest rate cuts, central bank purchases, de-dollarization trends and renewed inflows into exchange-traded funds.

Spot silver hits new record high

Spot silver rose 1.38 percent to $69.49 after reaching a record $69.98, with year-to-date gains exceeding 141 percent, outperforming gold due to supply shortages, strong industrial demand and robust investment inflows.

Analysts cautioned that some consolidation could occur over the holiday period as liquidity wanes, but the rally is expected to resume once trading volumes pick up, with gold prices eyeing a $5,000 target next year and silver aiming for $75 in the longer term.

Other precious metals

As gold and silver prices surged to new all-time highs, the broader precious metals market was up. Spot platinum surged 1.2 percent to $2,145.10, reaching its highest level in over 17 years, while palladium climbed 3.4 percent to a three-year peak of $1,819.00, buoyed by gains in gold and silver.