Gold hits $4,500 as Safe Haven Rush Meets Thin Holiday Markets

LONDON (December 24) Gold pushed above $4,500 an ounce on Wednesday, extending a rally that already feels overextended.

Investors have piled into the metal as geopolitical tensions have intensified and expectations of further US interest rate cuts remain firmly in place.

The move was made sharper by thin trading conditions in a holiday-shortened week. With fewer participants around, markets have become far more sensitive to headlines, and gold has taken full advantage.

Safe haven demand has been fuelled by rising frictions between the United States and Venezuela. Washington’s tougher stance on Venezuelan oil shipments and the response from Caracas have unsettled broader markets, reviving concerns over regional stability and global supply risks. In moments like this, gold’s appeal as a store of value tends to shine.

Monetary policy expectations continue to add support and markets are still pricing in Federal Reserve rate cuts in 2026, even after recent US data surprised to the upside. Lower rates reduce the opportunity cost of holding gold, keeping bullion attractive against bonds and cash.

US economic figures released this week showed growth running at an annualised 4.3 per cent in the third quarter. While the data underlined economic resilience, it did little to slow gold’s momentum, with traders more focused on where rates head next.

By the European open, spot gold was trading around $4,482 an ounce after touching an intraday record above $4,525. February US futures hovered just over $4,500. Silver and platinum also pushed to record levels, reinforcing the broader rush into precious metals.

With year-end liquidity thin and uncertainty running high, traders warn that sharp swings remain possible. Still, the bigger picture looks intact, with gold increasingly seen as a neutral asset in a fragmented global economy.

Some in the market are already eyeing $5,000 over the next six to twelve months.

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