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(Bloomberg) — Gold rose toward a record as investors looked ahead to US inflation data and monitored escalating tensions in Venezuela. Silver climbed to a fresh peak, and platinum jumped to the highest since 2008.
Bullion traded near $4,330 an ounce, recovering from a modest decline in the previous session that snapped a five-day winning streak. Inflation numbers due Thursday will be watched closely for clues on how the Federal Reserve’s appetite for further rate cuts might be impacted. Ahead of the release, several key Fed officials are due to speak publicly.
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Gold was also boosted by events in Venezuela, with President Donald Trump ordering a blockade of all sanctioned oil tankers. The US leader is also pressuring his Venezuelan counterpart Nicolas Maduro amid a military buildup in the region and the threat of land strikes.
“The tensions seem to be gradually ratcheting up,” said David Wilson, senior commodities strategist at BNP Paribas. Every factor supporting gold — from inflationary pressures to US equities and a global growth slowdown — appears to be occurring simultaneously, he said, predicting that bullion could reach $5,000 sometime next year.
Gold is not far off the record high above $4,381 an ounce set in October. The precious metal has jumped about two-thirds this year and is on track for its best annual performance since 1979. The scorching rally has been driven by elevated central-bank buying, as well as a broader pullback by investors from government debt and key currencies. Geopolitical tensions have also enhanced its haven appeal.
Investors are watching closely for any sign of further monetary easing after the US central bank last week delivered its third consecutive rate cut — a tailwind for precious metals, which don’t pay interest. For now, traders are assigning a near-25% chance of a reduction in January.
Bullion is expected to average $4,500 an ounce in 2026, according to Nicky Shiels, head of research at precious metals refiner MKS Pamp SA, joining a chorus of predictions that it will push higher. Gold will likely consolidate in the near term “before establishing a milder, more sustainable bullish trajectory” after this year’s “parabolic surge,” Shiels said in a note on Tuesday.
