The rally in silver prices continued on Tuesday as prices breached the $70-per-ounce mark for the first time ever on robust physical and investment demand.
Gold prices also hit a new record high, crossing the $4,500 per ounce mark on Tuesday on a weak dollar and geopolitical uncertainty.
Meanwhile, oil prices fell slightly as oversupply fears countered concerns about lower supply from Venezuela and Russia.
Silver and gold surge
Gold reached a new record, trading just under $4,500 an ounce, and silver climbed past $70 for the first time on Tuesday.
The surge in these safe-haven assets is driven by continued geopolitical uncertainty and a softening dollar, which increases demand.
At the time of writing, the COMEX gold contract was at $4,476 per ounce, up 0.2%, while silver was at $69.365 per ounce, up 1.2% from the previous close.
“Silver is responding to many of the same macro forces but with added intensity due to its own supply-demand dynamics. Tight supply conditions, combined with strong investment and speculative interest, are magnifying price moves as silver approaches the $70 level,” Ahmad Assiri, research strategist at Pepperstone, was quoted in a Reuters report.
Continuing its two-day decline, the US dollar is poised to record its largest annual drop since 2017.
Last week, US President Donald Trump escalated geopolitical tensions by ordering a “blockade” targeting all sanctioned oil tankers moving in and out of Venezuela.
Furthermore, he indicated that military action against the South American nation remains a possibility.
Expectations for a dovish monetary policy are currently being bolstered by reports that Trump plans to name a new Federal Reserve chair early next year.
Consequently, markets are presently pricing in two interest rate cuts for 2026.
Oil slips
Oil prices showed minimal movement on Tuesday. This stability resulted from a balance between two opposing factors.
The prospect of increased supply from the potential sale of Venezuelan crude, seized by the United States, and heightened concerns about supply disruptions following Ukrainian attacks on Russian vessels and port facilities.
At the time of writing, the price of West Texas Intermediate crude oil was at $57.86 per barrel, down 0.2%, while Brent was at $61.85 per barrel, down 0.4% from the previous close.
On Monday, prices saw a significant surge of over 2%. Brent experienced its largest one-day increase in two months, and WTI recorded its biggest climb since November 14.
On Monday, Trump indicated that the US might either retain or sell the oil recently seized off Venezuela’s coast.
This action is part of broader US measures, including a “blockade,” targeting oil tankers subject to sanctions that are attempting to enter or exit the South American nation.
Barclays, in a note released on Monday, anticipates that oil markets will be adequately supplied throughout the first half of 2026.
However, the bank projects a significant reduction in the oil surplus to just 700,000 barrels per day by the fourth quarter of 2026, cautioning that any extended disruption could lead to further market tightening.
Meanwhile, late Monday, Russian forces attacked the Black Sea port of Odesa, Ukraine, damaging port infrastructure and a vessel. This marked the second strike on the region in under 24 hours.
Concurrently, Ukrainian drone attacks in Russia’s Krasnodar region damaged two vessels and two piers and caused a fire in a village.
Separately, Ukraine has also been targeting Russia’s maritime logistics, specifically the “shadow fleet” oil tankers used to circumvent sanctions against Russia.
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