Bullion hits a one-week high as geopolitical tensions spike after Washington’s controversial intervention in Venezuela, lifting demand across precious metals.
Gold prices surged on Monday as heightened geopolitical tensions following the United States’ capture of Venezuelan President Nicolás Maduro over the weekend drove investors towards safe-haven assets.
Spot gold rose 1.8 per cent to $4,406.77 an ounce by 0508 GMT, its highest level in a week, while US gold futures climbed 1.9 per cent to $4,413.40. According to the experts, yet another geopolitical crisis has reignited safe-haven demand across the world, with gold and silver among the key beneficiaries as investors seek protection from geopolitical risk.
Washington’s move to capture Maduro marks its most controversial intervention in Latin America since the 1989 invasion of Panama. Venezuela’s Vice President Delcy Rodríguez has assumed interim leadership, though she insists Maduro remains president.
The latest spike adds to an extraordinary run for bullion. Gold gained around 64 per cent last year, its strongest annual performance since 1979—supported by geopolitical tensions, interest rate cuts, heavy central bank buying, and strong inflows into exchange-traded funds. Prices hit a record high of $4,549.71 on December 26, 2025.
While Philadelphia Federal Reserve President Anna Paulson said over the weekend that further rate cuts could be some way off after aggressive easing last year, markets are still pricing in at least two US rate cuts in 2026. Investors are now awaiting US non-farm payrolls data due on Friday for further policy clues.
Other precious metals also rallied sharply. Spot silver jumped 3.9 per cent to $75.46 an ounce, after touching an all-time high of $83.62 in late December.
Silver ended 2025 up 147 per cent, its best year on record, boosted by its designation as a critical US mineral and tightening supplies amid rising industrial demand.
Platinum rose 2.2 per cent to $2,189.88 an ounce, after hitting a record $2,478.50 last week, while palladium climbed 2.1% to $1,671.95.
Non-yielding assets such as gold tend to perform strongly in periods of low interest rates and heightened geopolitical or economic uncertainty, conditions that continue to underpin the precious metals rally.
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