NEW YORK: Gold rose to a one-week high and nearer its record peak on Monday as safe-haven demand spurred by US strikes in Venezuela added to bullion’s appeal, already fuelled by geopolitical tensions and rate cut bets.
Spot gold rose 2.9percent to USD4,453.22 an ounce by 10:10 a.m. ET (1510 GMT), after earlier hitting its highest level since December 29. Gold hit an all-time-high of USD4,549.71 on December 26. US gold futures for February delivery gained 3.1percent to USD4,463.5 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 64percent gain last year, driven by geopolitical flashpoints and the US Federal Reserve’s rate easing cycle.
Expectations of even lower rates, along with central bank buying and ETF flows bolstered the climb. The US 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 US 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 which 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 US data reinforces expectations that the Fed will have to ease more aggressively than currently priced,” Zumpfe added.
Markets await December’s non-farm payrolls on Friday, while expecting at least two rate cuts this year. Silver jumped 5.5percent to USD76.63/oz after soaring 147percent in 2025, driven by its designation as a US critical mineral, and a structural market deficit amid growing demand.
Spot platinum gained 6.3percent to USD2277.53/oz. Palladium rose 5percent to USD1720.93.