Gold steadies near record as platinum extends meteoric climb

Gold wavered near a record, as investors tracked mounting tensions in Venezuela and awaited US inflation data. Platinum extended a breakneck rally, surging close to $2,000 an ounce before paring gains.

Bullion traded around $4,320 an ounce, after rising 0.8% on Wednesday. It’s about $60 away from an all-time high reached in October. Inflation numbers due Thursday will be watched closely for clues on the Federal Reserve’s appetite for further interest-rate cuts.

The Fed delivered its third straight rate cut last week — a tailwind for precious metals, which don’t pay interest — but has been ambiguous about the pace of monetary easing heading into next year. Traders are assigning a roughly 25% chance of a reduction in January.

Heightened tensions can enhance the appeal of precious metals, and events in Venezuela, where Trump has ordered a blockade of all sanctioned oil tankers, have given them a boost this week. A greater US military presence in the region is raising pressure on the government of Nicolás Maduro, with Mexico and Brazil offering to mediate.

“The direction of real yields has become more supportive,” said Dilin Wu, a research strategist at Pepperstone Group Ltd. in Australia. “Add ongoing geopolitical uncertainty and thinner year-end liquidity, and precious metals are regaining their role as portfolio stabilizers.”

Gold has jumped about two-thirds this year and is on track for its best annual performance since 1979, after a blistering rally driven by central-bank buying and inflows into gold-backed exchange traded funds.

Meanwhile, platinum rose for a sixth session. The metal has more than doubled this year, and is set for the biggest annual gain in data compiled by Bloomberg going back to 1987.

The surge has come as the London market shows signs of tightening, as banks park metal in the US to insure against the risk of tariffs. Exports to China have also been robust this year, and optimism for the nation’s demand has been bolstered as futures recently began trading on the Guangzhou Futures Exchange.

Open interest and trading volumes have surged in Guangzhou for the nearest contract in June, while prices on the exchange have risen well above other international benchmarks, adding fuel to the global rally.

Gold dipped 0.3% to $4 325.23 an ounce as of 11:03 a.m. in London. Platinum rose to $1,923.39 having earlier hit the highest since 2008. Silver edged lower, and palladium rose. The Bloomberg Dollar Spot Index nudged up 0.1%.

© 2025 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.