Gold and silver surged to fresh record highs on Friday as investors flocked to safe-haven assets amid escalating geopolitical tensions and a weakening U.S. dollar, extending a powerful year-end rally in precious metals.
Spot gold rose 0.6% to $4,506.76/oz by 21:55 ET (02:55 GMT), after touching a new all-time high of $4,530.60/oz earlier in the session.
U.S. gold futures for February delivery climbed 0.7% to $4,537.55.
Gold prices were on track to gain nearly 3% for the week, supported by heightened global uncertainty and sustained demand for defensive assets.
Silver outperformed, with spot prices surging more than 4% to a record $75.14/oz, bringing weekly gains to over 7%.
Geopolitical Tensions in Venezuela and Nigeria Fuel Gold Rally
Geopolitical developments were a key catalyst behind the surge in precious metals. Safe-haven demand intensified after the United States stepped up pressure on Venezuela’s oil exports, raising fears of potential supply disruptions and heightened regional instability.
Market anxiety was further amplified after President Donald Trump said on social media that U.S. forces had carried out strikes against militant targets in Nigeria, underscoring Washington’s willingness to deploy military force across multiple regions.
Silver followed gold higher, supported not only by its role as a defensive asset but also by strong industrial demand, particularly from the electronics and clean-energy sectors.
Thin holiday trading conditions, combined with strong investment inflows and constrained physical supply, magnified price movements across the precious metals market.
Dollar Weakness, Fed Easing Bets Add Fuel to Gold and Silver Rally
The rally in precious metals was further supported by a weaker U.S. dollar, which slipped against a basket of major currencies.
The greenback has faced sustained pressure amid growing expectations that the Federal Reserve could begin easing monetary policy in 2026, as inflation shows signs of cooling and economic growth moderates.
A softer dollar typically boosts demand for dollar-denominated commodities by making them more affordable for investors holding other currencies.
Declining U.S. Treasury yields have also underpinned non-interest-bearing assets such as gold, as investors reassess the outlook for U.S. interest rates and rotate portfolios toward traditional stores of value.
With market liquidity likely to remain thin through the holiday period, price volatility may be amplified. Nevertheless, analysts said underlying fundamentals continue to point to strength in both gold and silver heading into the new year.
Sources: Fxstreet
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