WASHINGTON (dpa-AFX) - Gold prices reached a new record high on Tuesday, as the geopolitical conflicts in South America and Europe intensify.
Front Month Comex Gold for December delivery rose by $38.20 (or 0.86%) to $4,482.80 per troy ounce.
Front Month Comex Silver for December delivery skyrocketed by $2.5790 (or 3.80%) to $70.485 per troy ounce.
Notably, today's price is a also new record high for silver, which has been trading up for three consecutive sessions.
Accusing Venezuelan President Nicolas Maduro's regime of utilizing oil revenues to bankroll illicit drug trafficking that has caused an opioid crisis in the U.S., U.S. President Donald Trump ordered a 'naval blockade' on all 'sanctioned vessels' entering and exiting Venezuela. Trump's administration labelled Maduro's government as an ally of foreign terrorists.
Rebutting Trump's claims, Maduro counter-claimed that the U.S. is eyeing on the rich oil reserves of Venezuela.
So far, the U.S. military has seized two 'sanctioned tankers' this month off the coast of Venezuela. The U.S. Coast Guard is in pursuit of a third oil tanker.
Trump announced that the U.S. will keep or sell the crude oil and keep the tankers as well.
In Europe, the series of meetings that the U.S. held with Russia and Ukraine separately with a 20-point proposal to end the Russia-Ukraine conflict have failed to yield a breakthrough. With 'territorial concessions' being the sticking point in the discussions, a ceasefire remains evasive.
On Sunday, after negotiations between the U.S. and Ukraine in Miami, Florida, both sides called the talks as 'productive and constructive'. However, analysts are awaiting clear signals on an imminent resolution.
On the economic front, the first official estimate for third-quarter GDP was released today by the U.S. Bureau of Economic Analysis.
The numbers showed that GDP advanced an annualized 4.3% in the third-quarter 2025, the most in two years compared to 3.8% (revised) in the second-quarter 2025. The estimate was delayed due to the 43-day government shutdown.
Core Personal Consumption Expenditure prices increased an annualized 2.9% in the third-quarter 2025, higher than 2.6% in the previous quarter.
Even though inflation is oscillating above the U.S. Federal Reserve's target of 2%, the central bank has lowered the benchmark lending rates thrice this year, primarily due to concerns of increasing unemployment.
ADP data revealed that private employers in the U.S. added an average of 11,500 jobs per week in the four weeks ending December 6. This follows an upwardly revised average gain of 17,500 jobs in the previous period.
Increasing rate cut expectations and the ongoing geopolitical conflicts have pushed traders to pile up yellow metal, leading to an increase in gold prices.
The CME Group's FedWatch Tool is currently indicating that investors are betting on a 15.5% chance of a 25-basis-point interest rate cut in the upcoming January 27-28 Federal Reserve's meeting.
The U.S. dollar index was last seen trading at 98.04, down by 0.24 (or 0.24%) today.
While gold has risen around 70% this year, silver has surged 140% year-to-date.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
