Gold surged to a record high on Tuesday as investors flocked to the traditional safe-haven asset amid heightened geopolitical tensions, with the U.S. attempting to seize additional tankers carrying Venezuelan oil. Silver also climbed, trading close to its all-time highs.
As per reports by Kedia Advisory Gold and silver surged to record highs as expectations of future US Federal Reserve rate cuts and escalating geopolitical tensions boosted safe-haven demand. Gold crossed $4,497, marking an exceptional year-to-date rise of over 70%, while silver rallied sharply toward $70, supported by both monetary and industrial factors. Markets are increasingly pricing in multiple rate cuts through 2026–27, reducing the opportunity cost of holding non-yielding assets. Geopolitical risks around energy security, combined with strong central bank buying and ETF inflows, have further reinforced investor confidence in precious metals.
The recent rally in precious metals has been driven mainly by growing expectations that the US Federal Reserve will maintain a dovish policy stance through 2026 and beyond. Recent economic data indicate easing inflation and a softening labour market, leading investors to anticipate at least two interest rate cuts next year. Lower rates reduce the opportunity cost of holding non-yielding assets like gold and silver, increasing their attractiveness compared with fixed-income investments.
Geopolitical risks have further supported prices. Rising tensions around global energy supply routes, including tanker seizures near Venezuela and ongoing instability related to the Russia-Ukraine conflict, have heightened concerns over energy security. This uncertainty has encouraged investors to seek safe-haven assets.
Institutional demand has also strengthened the upward trend. Central banks continue to build gold reserves, while steady inflows into gold-backed ETFs reflect long-term confidence. Silver is additionally supported by strong industrial demand from sectors such as renewable energy, electric vehicles, and data centres.
