Gold hits record high on safe-haven demand

Gold soared to a record high on Tuesday, coming within a whisker of breaching the $4,500-per-ounce level, as investors flocked to the safe-haven metal on US-Venezuela tensions, while silver also rallied to a fresh peak.

Spot gold was up 0.9 percent at $4,486.41 per ounce, as of 0329 GMT, after hitting a record $4,497.55 earlier in the day. US gold futures for February delivery jumped 1.1 percent to $4,519.70.

"US-Venezuelan tensions are keeping gold on the radar for investors as an uncertainty hedge," said Tim Waterer, chief market analyst at KCM Trade, adding that gold had surged this week as part of a broader positioning shift with US interest rates projected to ease further.

Waterer said buyers continued to see precious metals as an effective way to diversify portfolios and preserve value, adding that "I don't think we are at the high watermark yet for gold or silver."

US President Donald Trump last week announced a "blockade" of all oil tankers under sanctions entering and leaving Venezuela.

Further support for gold came from reports that Trump could name a new Federal Reserve Chair by early January, with markets pricing in two rate cuts for next year amid expectations of a more dovish policy stance.

Bullion, a classic refuge in times of geopolitical and economic unease, has surged more than 70 percent this year, riding a potent mix of geopolitical risks, rate-cut bets, central bank buying, de-dollarisation and renewed exchange-traded fund inflows.

"With year-end approaching, thinner liquidity conditions could amplify price swings," said Frank Walbaum, a market analyst at Naga, noting that gold might remain especially sensitive to geopolitical headlines and shifts in rate expectations.