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. The prices are at an all-time high in the Sultanate of Oman.
Gold prices in Oman per gram
24k- 56.8
22k- 53.05
18k-41.9
Spot gold was up 0.8% at $4,479.18 per ounce, as of 0527 GMT, after hitting a record $4,497.55 earlier in the day. U.S. gold futures for February delivery jumped 1% to $4,511.50.
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.
The structural tailwinds that have driven both of these to record highs this year persist, be it central bank demand for gold or surging industrial demand for silver," said Neil Wilson at Saxo Markets."The latest surge comes after soft inflation and employment readings in the US last week, which reinforced expectations around the Fed's policy easing next year.
Geopolitics remains a factor, too."Oil prices dipped, having jumped more than two percent on Monday on concerns about Washington's measures against Caracas.
The United States has taken control of two oil tankers and is chasing a third, after President Donald Trump last week ordered a blockade of "sanctioned" tankers heading to and leaving Venezuela.
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.
