Gold prices are poised to rise nearly 3% this week as investors seek protection from growing global uncertainty.
Gold and silver soared to new record highs on Friday as investors turned to safe havens amid escalating geopolitical tensions and a weaker U.S. dollar, continuing the precious metals' powerful year-end rally.
Spot gold rose 0.6% to $4,506.76 per ounce by 2:55 a.m. Moscow time, having hit a new record high of $4,530.60 per ounce earlier in the day.
U.S. gold futures for February delivery rose 0.7% to $4,537.55.
Spot silver prices jumped more than 4%, reaching a new record high of $75.14 per ounce, and are poised to rise more than 7% this week.
Geopolitical tensions in Venezuela and Nigeria support gold.
Geopolitical events have been a key driver of the rally. Demand for safe-haven assets intensified after the US increased pressure on Venezuelan oil exports, raising concerns about supply disruptions and broader regional instability.
Further fueling market anxiety, President Donald Trump announced on social media that US forces had struck militant targets in Nigeria, underscoring Washington's willingness to use military force in several regions.
Silver followed gold's rise, supported not only by its safe-haven appeal but also by industrial uses, particularly in electronics and clean energy technologies.
Strong investment inflows and limited availability amplified price action amid thin trading during the holiday period.
The dollar remains weak amid expectations of Fed easing.
The rally was further supported by weakness in the US dollar, which declined against a basket of major currencies.
The dollar came under pressure amid growing expectations that the Federal Reserve will begin easing monetary policy in 2026, as inflation shows signs of cooling and economic growth slows.
A weaker dollar typically boosts demand for dollar-denominated goods, making them cheaper for holders of other currencies.
Lower US Treasury yields are also supporting non-interest-bearing assets like gold, as investors reassess the outlook for US rates and shift portfolios toward stores of value.
With liquidity likely to remain tight through the holiday season, price swings could be exaggerated. However, analysts note that broader fundamentals point to continued strength in gold and silver in the new year.