Gold soars above $4,500 for first time on geopolitics, rates

Gold rose to a record, pushing above $4,500 an ounce for the first time, on escalating tensions in Venezuela and expectations for more US rate cuts next year.

Bullion rose more than 0.5%, building on three days of gains. Frictions in Venezuela, where the US has blockaded oil tankers, have added to the metal’s haven appeal as it heads for its best annual performance since 1979.

Traders are also betting the US Federal Reserve will follow three straight interest-rate cuts by lowering the cost of borrowing again next year, which would be a tailwind for non-yielding precious metals.

Spot gold rose 0.5% to $4,507.27 an ounce as of 7:44 a.m. in Singapore. Silver advanced as much as 0.6% to a record $71.856. Platinum traded above $2,300 an ounce for the first time, according to data compiled by Bloomberg going back to 1987. Palladium also rose. The Bloomberg Dollar Spot Index ended the previous session down 0.3%.