Gold prices climbed above $4,500 an ounce for the first time on Wednesday, extending a historic rally as investors sought safe havens amid heightened geopolitical tensions and firm expectations that the U.S. Federal Reserve will cut interest rates further next year.

The move was amplified by thin liquidity in a holiday-shortened trading week, which left markets more sensitive to headline risk.

Spot gold last traded 0.3% higher at $4,499.82 an ounce by 05:05 ET (10:05 GMT), after touching a record high of $4,525.96/oz earlier in the day.

Gold Futures for February gained 0.5% to $4,525.60/oz.

U.S.-Venezuela tensions, Fed cut bets boost gold

Safe-haven demand was underpinned by rising geopolitical frictions, including renewed tensions between the United States and Venezuela, which have unsettled broader financial markets.

Washington’s stepped-up actions against Venezuelan oil shipments and Caracas’ response have raised concerns about regional stability and global supply risks, prompting investors to seek protection in assets perceived as stores of value.

Gold has traditionally benefited from such periods of uncertainty.

Expectations of easier U.S. monetary policy have also been a key driver. Markets continue to price in Federal Reserve rate cuts in 2026, even after recent U.S. economic data showed surprising strength.

Lower interest rates reduce the opportunity cost of holding non-yielding assets such as gold, making bullion more attractive relative to bonds and cash.

Data released this week showed the U.S. economy expanded at an annualised rate of 4.3% in the third quarter, highlighting the resilience of consumer spending and business activity.

While the figures reinforced confidence in the economic outlook, they did little to dent gold’s advance, as investors focused instead on the longer-term trajectory of interest rates.

Trading conditions remained subdued across major regions as markets headed into the Christmas holidays. U.S. markets are set to close early on Wednesday for Christmas Eve and will be shut on Thursday for Christmas Day, while participation has also thinned in Europe and parts of Asia.

Traders cautioned that such conditions could exaggerate price moves, potentially leading to sharp swings in either direction.

Silver, copper scale new peak

Other precious and industrial metals also benefited from the strong sentiment.

Spot silver rose over 0.9% to a fresh record high of $72.10/oz, while platinum was last down 0.7% to $2,278/oz after hitting $2,381.2/oz earlier in the day.

Benchmark Copper Futures on the London Metal Exchange rose 1.1% to a fresh record high of $12,060.5 a ton, while U.S. Copper Futures gained 1.4% to $5.63 a pound.