Weekly Gold Review: Futures break above $4500 per ounce mark amid escalating geopolitical tensions

COMEX Gold futures broke above $4500 per ounce yet again as safe-haven demand strengthened amid escalating geopolitical tensions. The metal marked a weekly gain of more than 4%, supported by uncertainty linked to the US incursion in Venezuela, a diplomatic standoff between China and Japan, and the ongoing Russia-Ukraine conflict. World Gold Council or WGC noted in a latest update that December?s 4% gain took gold?s full-year return to a multi-decade record of 67% in 2025. Central banks, tariff and trade risks, strong options market activity and a weaker US dollar all played a part. It noted that the December precious metals surge, including silver and platinum, and commodity index rebalancing could elicit some near-term volatility. Upcoming tariff rulings by the US Supreme Court will likely have important implications for US trade policy. The effect on gold may be more nuanced but potentially supportive. Finally, the continued stream of geopolitical flareups, most recently exemplified with US actions in Venezuela, create support for gold and highlight that it has become the safe haven of choice.

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