Against the backdrop of the arrest of the President of Venezuela, gold prices are nearing a new record.

According to Reuters, gold continues to rise in price, approaching record highs, which is linked to geopolitical risks and expectations of a decrease in interest rates by the Federal Reserve (Fed), which in turn stimulates demand for this precious metal.

The increased interest in gold as a "safe-haven asset" is fueled by heightened geopolitical tension caused by the arrest of the president of Venezuela, as well as forecasts of a possible rate cut in the U.S.

After nearly a 3% increase in the previous session, the spot price of gold rose by 0.3%, reaching $4,461.09 per ounce. On December 26, gold hit a record of $4,549.71, finishing the year with an impressive growth of 64% — the best performance since 1979.

ActivTrades analyst Ricardo Evangelista noted: "Gold prices are supported by increased demand for safe-haven assets amid rising geopolitical uncertainty following events in Venezuela, as well as expectations of a rate cut by the Federal Reserve in light of disappointing PMI data in the U.S. manufacturing sector."