Gold and silver hit record highs amid escalating tensions in Venezuela and Nigeria.

December 29, 2025
libyawire
Economy
0

Prices for gold, silver, and platinum jumped to record levels, the highest ever, extending historic gains in the year-end race, supported by escalating geopolitical tensions, a weak US dollar, and low market liquidity.

Gold rose by more than 1.6%, surpassing $4,540 per ounce in trading yesterday, Friday. Meanwhile, spot silver prices jumped for the fifth consecutive session by more than 7.6%, exceeding $77 per ounce.

Geopolitical Tensions
This coincides with escalating geopolitical tensions, particularly in Venezuela, where the United States has imposed a blockade on its oil tankers to increase pressure on the government of President Nicolás Maduro. This has increased the appeal of gold as a safe haven.

The United States also launched military strikes on sites belonging to the Islamic State (ISIS) in Nigeria, which also slightly raised oil prices in trading yesterday, Friday.

It was stated: “Ongoing escalating geopolitical tensions have continued to support demand for safe-haven assets, including gold and silver. Low year-end market liquidity is exacerbating price volatility.”

At the same time, the Bloomberg Dollar Index, the main indicator of the strength of the US currency, fell by 0.7% this week, its largest decline since last June. A weak dollar supports gold and silver prices.

Best Performance Since 1979
Since the beginning of the year, gold has risen by more than 70%. Silver has also risen by more than 150%, with both on track to record their best performance since approximately 1979.

Gold and silver prices have been supported by increased central bank purchases, cash flows into exchange-traded funds, and three consecutive interest rate cuts by the US Federal Reserve Board.

Lower borrowing costs are also a supportive factor for precious metals, which do not yield interest. Traders anticipate more interest rate cuts in 2026.

The trade policies of US President Donald Trump, aimed at reshaping global trade, have added further momentum to precious metal prices since the beginning of the year.

Venezuela

Venezuela is a South American country with a history of indigenous cultures before Spanish colonization in the 16th century. It gained independence in the early 19th century and is known for its significant oil reserves and diverse natural landscapes, including Angel Falls, the world’s tallest waterfall.

United States

The United States is a federal republic founded in 1776 following its Declaration of Independence from Great Britain. Its history is marked by westward expansion, industrialization, and its emergence as a global superpower in the 20th century. The nation is defined by its diverse population, democratic institutions, and significant cultural influence worldwide.

Nigeria

Nigeria is a West African country with a rich history shaped by ancient kingdoms like the Nri and Benin, British colonization in the 19th century, and independence achieved in 1960. It is Africa’s most populous nation and a cultural powerhouse, notably through its globally influential film industry, Nollywood, and diverse artistic traditions.

Bloomberg Dollar Index

The Bloomberg Dollar Index is a financial benchmark that measures the performance of the U.S. dollar against a basket of ten major global currencies. It was launched by Bloomberg L.P. in 2004 to provide traders and investors with a real-time, liquid gauge of the dollar’s strength in the foreign exchange market.

US Federal Reserve Board

The US Federal Reserve Board is the governing body of the Federal Reserve System, the central bank of the United States. It was established by Congress in 1913 through the Federal Reserve Act to provide the nation with a safer, more flexible, and more stable monetary and financial system.