Gold climbed above $4,500 per ounce for the first time on Wednesday during Asian trading, as investors bet that the U.S. Federal Reserve will continue cutting interest rates in 2026 and as tensions rose between the United States and Venezuela.

The surge pushed the precious metal to a new record high of $4,519.78 at its peak, extending a rally that has seen gold jump by more than 70% since the start of 2025.

Analysts say expectations of lower interest rates often support gold because the metal becomes more attractive when returns on interest-bearing assets drop. At the same time, geopolitical uncertainty typically drives investors toward safe-haven assets like gold.