Africa-Press – Tanzania. Gold rose to a record $4,525.96 an ounce on Wednesday, rising around 1% amid concerns over rising US-Venezuela tensions and expectations of more US rate cuts.
After hitting the all-time high level, the price of gold was at around $4,495.9 per ounce as of 0550GMT, gaining around 72% on an annual basis.
Silver prices also rose more than 1% to $72.7, which is a historically high level. The rate increased around 144% during the last 12 months.
The demand for safe havens increased due to worries about the slowing pace of global economic growth, as well as bets on additional US interest rate reductions in 2026, especially after the stronger-than-expected US economic growth in the third quarter of this year.
The US gross domestic product (GDP) grew at an annualized rate of 4.3% in the third quarter, exceeding market expectations and marking the highest growth in two years.
Tensions between Washington and Caracas have been rising as the US stepped up surveillance and enforcement actions against oil shipments linked to Venezuela, raising fresh concerns over potential disruptions to global crude flows, and adding to the geopolitical unpredictability of the world.
US President Donald Trump alleges that the nation uses oil revenue to finance illegal immigration and drug shipments to the US.
Another significant reason for the rally is the buying of gold by central banks to boost reserves.
