Gold has topped US$4,500/oz for the first time, lifted by escalating geopolitical tensions and expectations of further USinterest-rate cuts.
Spot gold rose 1.5% to US$4,504.59/oz by 10:38am AEDT, taking its year-to-date gain beyond 70%. On that performance, 2025 is on track to be gold’s strongest year for investors in more than 40 years.
Traders are wagering the US Federal Reserve will extend its recent easing cycle next year after 3 consecutive rate cuts, a backdrop that typically supports non-yielding assets such as precious metals.
Safe-haven demand has also firmed over the past week amid heightened geopolitical risk, particularly involving Venezuela, where the US has blockaded oil tankers as it increases pressure on President Nicolás Maduro’s government.