Gold prices surged in Asian trading, moving back toward record territory as geopolitical tensions and shifting U.S. rate expectations reignited demand for safe-haven assets. The rally underscores how quickly bullion responds when political risk collides with monetary uncertainty.
Spot gold traded around $4,458 per ounce, while U.S. gold futures hovered near $4,469, extending gains after a sharp 2.7% jump in the previous session. Prices remain within striking distance of last week’s all-time high of $4,549.71, a level briefly breached before profit-taking set in.
Venezuela Tensions Fuel Safe-Haven Demand
The immediate catalyst came from developments in Venezuela, where a surprise U.S. operation over the weekend resulted in the capture of President Nicolás Maduro. The move rattled global markets, lifting demand for assets perceived as stores of value during periods of instability.
Maduro was transferred to the United States to face long-standing narcotics-related charges and entered a not-guilty plea in New York, according to officials. The episode injected fresh uncertainty into energy and commodity markets already grappling with trade distortions.
Key factors supporting gold include:
- Rising geopolitical risk in Latin America
- Renewed volatility across global commodity markets
- Investor rotation into defensive assets
Gold has historically benefited from such environments, particularly when political shocks coincide with questions about economic policy.
Fed Rate-Cut Expectations Strengthen Gold’s Case
Beyond geopolitics, monetary policy expectations continue to underpin bullion. Markets are pricing in two additional Federal Reserve rate cuts in 2026, a scenario that typically favors non-yielding assets like gold.
On Monday, Minneapolis Fed President Neel Kashkari said U.S. inflation appears to be easing gradually, reinforcing the view that policymakers may have room to loosen conditions if price pressures continue to cool.
Investors are now focused on upcoming U.S. data, especially December’s nonfarm payrolls report, which could shape expectations around the labor market and the Fed’s next moves.
Silver, Platinum Rise as Copper Hits Records
Strength was not limited to gold. Other metals posted notable gains, reflecting tight supply and robust investor interest.
- Silver climbed about 3% to nearly $78.80 per ounce
- Platinum advanced roughly 2% to around $2,331
- Copper surged to record highs, with LME prices above $13,330 per ton
Analysts point to mine disruptions and altered trade flows, particularly amid U.S. tariff policies, as key drivers behind copper’s continued rally.
Together, these moves highlight a broader metals market buoyed by risk aversion, supply constraints, and expectations of easier financial conditions ahead.
