News

*

Bullion hits record high at $4,497.55, up over 70% this year

*

Silver ‍hits new high at $69.98, outpaces gold with 141% YTD gain

*

Platinum hits 17-year peak, palladium touches three-year high

(Updates for Asia market opener)

By Sherin Elizabeth Varghese

Dec 23 (Reuters) - Gold soared to a record high on Tuesday, coming within a whisker of breaching the $4,500-per-ounce level, as investors flocked to the safe-haven metal on U.S.-Venezuela tensions, while silver also rallied to a fresh peak.

Spot gold was up 0.9% at $4,486.41 per ounce, as of 0329 GMT, after ⁠hitting a record $4,497.55 earlier in the day. U.S. ⁠gold futures for February delivery jumped 1.1% to $4,519.70.

"U.S.-Venezuelan tensions are keeping gold on the ⁠radar for investors as an uncertainty hedge," said Tim Waterer, chief market analyst at KCM Trade, adding that gold had surged this week as part of a ‍broader ‌positioning shift with U.S. interest rates projected to ease further.

Waterer said buyers continued to see precious metals as an effective ​way to diversify portfolios and preserve value, adding that "I don't think we are at the high watermark yet for gold or silver."

U.S. President Donald Trump last week announced a "blockade" of all oil tankers under sanctions entering and leaving Venezuela.

Further support for gold came from reports that Trump could name a new Federal Reserve Chair by early January, with markets pricing in two rate cuts for next year amid expectations of a more dovish policy stance.

Bullion, a classic refuge in times of geopolitical and economic ​unease, has ⁠surged more than 70% this year, riding a potent mix of geopolitical risks, rate-cut bets, central bank buying, de-dollarisation and renewed exchange-traded ⁠fund inflows.

"With year-end approaching, thinner liquidity conditions could amplify price swings," said Frank Walbaum, a market analyst ‌at Naga, noting that gold might remain especially sensitive to geopolitical headlines and shifts in rate expectations.

Spot silver was up 1% at $69.70 after touching a record $69.98, with year-to-date gains topping ​141% and outpacing gold on supply deficits, industrial demand and investment inflows.

Michael Brown, a senior strategist at Pepperstone, said some consolidation was possible over the festive period as liquidity thinned.

He, however, said the ‍rally should resume in earnest once volumes ‍returned, with ⁠the $5,000 level a natural target for gold next year and the $75 mark a longer-term objective for silver.

Spot platinum jumped 1.2% to $2,145.10, its highest in more than 17 years, while palladium rose 3.4% to a three-year high of $1,819.00, tracking strength in gold and silver. (Reporting by Sherin Elizabeth Varghese and Arunima Kumar in Bengaluru; Editing by Rashmi Aich and ‌Subhranshu Sahu)

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories

Log in to our website to save your bookmarks. It'll just take a moment.

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.