Jan 5 – Gold rose to a one-week high on Monday, after U.S. strikes in Venezuela added to bullion’s safe-haven appeal.
Spot gold rose 2.7% to $4,444.52 an ounce by 1:38 p.m. ET , after earlier hitting its highest level since December 29. Gold hit an all-time-high of $4,549.71 on December 26.
U.S. gold futures for February delivery settled 2.8% higher at $4,451.5 an ounce.
“The situation around Venezuela has clearly reactivated safe-haven demand, but it comes on top of existing concerns about geopolitics, energy supply and monetary policy,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
Gold posted a 64% gain last year, driven by geopolitical flashpoints and the U.S. Federal Reserve’s rate-easing cycle. Expectations of even lower rates, along with central bank buying and ETF flows gave further support.
The U.S. attacked Venezuela and deposed President Nicolas Maduro on Saturday, in Washington’s most direct intervention in Latin America since the 1989 invasion of Panama.
President Donald Trump warned of another strike if Caracas resists U.S. efforts to open up its oil industry and stop drug trafficking, and suggested possible action against Colombia and Mexico over illicit drug flows.
Gold is a traditional store of value that also performs well in a low-interest rate environment due to its non-yielding nature.
“Another move toward new record highs would likely be triggered if geopolitical tensions broaden further or if incoming U.S. data reinforces expectations that the Fed will have to ease more aggressively than currently priced,” Zumpfe said.
Markets await December’s nonfarm payrolls on Friday, while expecting at least two rate cuts this year.
Silver jumped 5.2% to $76.37/oz, after soaring 147% in 2025, driven by its designation as a U.S. critical mineral, and a structural market deficit amid growing demand.
Spot platinum gained 5.9% to $2,269.55/oz. Palladium rose 3.4% to $1,694.75.
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