Gold, silver jump on Venezuela geopolitical tensions
Gold and silver prices surged on Monday as investors reacted to heightened geopolitical risks following the US capture of Venezuelan leader Nicolás Maduro.
Spot gold climbed as much as 2.3%, surpassing $4,430 an ounce, while silver rose nearly 5%, News.Az reports, citing Bloomberg.
President Donald Trump said the US plans to “run” Venezuela after Maduro’s ousting over the weekend, creating uncertainty over the country’s future governance. Trump added that Washington required “total access” to Venezuela, including its oil reserves.
Gold is fresh from posting its best annual performance since 1979, hitting a series of records throughout last year with support from central-bank buying and inflows to bullion-backed exchange-traded funds. Three successive rate cuts by the US Federal Reserve were also a tailwind for precious metals, which don’t pay interest.
Some leading banks forecast further gains in gold this year, especially with the Fed expected to deliver additional interest-rate reductions and Trump reshaping the US central bank’s leadership. Goldman Sachs Group Inc. said last month that its base case was for a rally to $4,900 an ounce, with risks to the upside.
Silver rallied even more than gold last year, blowing through levels that until recently seemed unthinkable to all but the most enthusiastic of market watchers. In addition to the factors that aided gold, silver has also benefited from sustained concerns that the US administration could eventually impose import tariffs on the refined metal.
Gold rose to $ an ounce as of 8:58 a.m. London time. Silver climbed to $. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a key gauge of the US currency’s strength, was up .
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