Gold climbs above $4,500 in historic rally

Silver also on track for best year since '79

- ROBIN PAXTON PREETI SONI

A worker pours liquid gold into casts at ABC Refinery's smelter in Sydney.

(AFP)

Gold rose to an all-time high above $4,500 (about 139,500 baht) an ounce on escalating tensions in Venezuela and expectations for more US rate cuts. Silver and platinum also advanced to records.

Spot gold climbed nearly 1%, building on three consecutive days of gains. Frictions in Venezuela, where the US has blockaded oil tankers, have added to the metal's haven appeal. Traders are also betting the Federal Reserve will follow three straight interest-rate cuts by lowering the cost of borrowing again next year, which would be a tailwind for nonyielding precious metals.

Gold has gained more than 70% this year and silver has risen by 150%; both are on track for their best annual performance since 1979. The rally in precious metals has been underpinned by elevated central-bank purchases and inflows into exchange-traded funds. Total holdings in gold-backed ETFs have risen every month this year except May, according to World Gold Council data.