Gold prices hit a historic milestone on Tuesday as U.S. gold futures surged above $4,500 per ounce for the first time ever, extending an extraordinary rally in the precious metal. With the latest move, gold is now up more than 70% so far this year, putting it firmly on track for its largest annual gain since 1979.
The breakout above the $4,500 mark reflects intensifying safe-haven demand amid escalating geopolitical tensions, particularly involving the United States and Venezuela, alongside growing expectations of easier monetary policy in the U.S. Markets are increasingly pricing in interest rate cuts next year, which has significantly boosted the appeal of non-yielding assets such as gold.
Analysts also point to strong central bank buying, ongoing de-dollarisation trends, and renewed inflows into gold-backed exchange-traded funds as key structural drivers behind the rally. With year-end liquidity thinning, price moves have become sharper, further accelerating the upside momentum.
The surge in gold has spilled over into the broader precious metals complex. Silver continues to trade near record highs, having already outperformed gold this year, while platinum and palladium have also seen strong gains, supported by supply constraints and investor demand.
Market watchers say gold’s move above $4,500 underscores a profound shift in global investor positioning, with precious metals increasingly viewed as a core hedge against geopolitical risk, policy uncertainty, and currency volatility.
