Gold and silver prices both hit record highs as tensions in the Caribbean escalate

As the United States boosts troop deployments to the Caribbean region and military tensions with Venezuela escalate, prices of precious metals such as gold and silver have reached all-time highs.

On the 23rd (local time) at the New York Mercantile Exchange, gold futures for February delivery closed at 4505.7 dollars per ounce, up 0.8% from the previous session. Spot gold prices also rose intraday to 4497.55 dollars per ounce, setting a new record high.

According to Reuters, spot silver prices also surged more than 3% intraday to 71.49 dollars per ounce, breaking above the 70-dollar level for the first time.

Tensions between the United States and Venezuela are cited as a backdrop to the rise in precious metal prices. The Trump administration, after recently sinking a drug cartel ship in the Caribbean, has been seizing tankers to block crude oil exports, a major funding source for the Nicolás Maduro regime in Venezuela.

President Trump has also raised the possibility of ground military operations in Venezuela. The Wall Street Journal (WSJ) reported that U.S. forces have bolstered deployments of special operations aircraft and other assets to the Caribbean region, heightening geopolitical unease.

Regarding the sharp rise in silver prices, Peter Grant, senior metals strategist at Jainer Metals, said, "At the base is a supply shortage that has failed to keep up with increased industrial demand," adding, "A weaker dollar and expectations of lower interest rates are increasing buying demand."

Shin Hyun-bo, Hankyung.com reporter greaterfool@hankyung.com