Gold Prices Edge Closer to a New Record High

Gold prices in the global market have climbed to near-record levels, supported by a weaker U.S. dollar, growing expectations of a shift in Federal Reserve policy, and persistent geopolitical uncertainties. These factors have strengthened demand for gold as a safe-haven asset.

In the spot market, gold rose 0.8 percent to $4,482.70 per ounce. During the session, prices briefly touched a record high of $4,497.55 per ounce, coming within striking distance of the psychologically important $4,500 level. Meanwhile, U.S. gold futures for February delivery gained 1 percent to settle at $4,514.70 per ounce.

Carlo Alberto De Casa, an analyst at Swissquote Banking Group, said a combination of factors is driving the rally. “Expectations surrounding the Federal Reserve’s policy stance, waning confidence in the U.S. dollar, ongoing geopolitical tensions, and continued gold purchases by central banks are collectively boosting investor interest in gold,” he noted.

The U.S. dollar weakened for a second straight day and is heading toward its sharpest annual decline since 2017. A softer dollar typically makes dollar-denominated commodities, including precious metals, more attractive to investors.

Geopolitical developments have further fueled market uncertainty. Last week, U.S. President Donald Trump ordered a blockade on all sanctioned oil tankers operating to and from Venezuela. He also stopped short of ruling out the possibility of military conflict with the country. These statements have heightened global uncertainty, reinforcing demand for safe-haven assets such as gold and silver.