Gold prices climbed nearly 3% on Monday as geopolitical tensions escalated following the US capture of Venezuelan President Nicolás Maduro, reigniting demand for safe-haven assets.
Spot gold rose to a one-week high of $4,455.42 per ounce, placing it around $100 below the record high reached late in 2025. In New York trading, US gold futures surged even higher, touching levels near $4,480 per ounce.
Investor appetite for defensive assets strengthened over the weekend after the United States launched a military operation in Venezuela and removed Maduro from power — marking Washington’s most direct intervention in Latin America since 1989.
The development “reinforced a backdrop of geopolitical uncertainty,” said Christopher Wong, an analyst at Oversea-Chinese Banking Corp in Singapore. However, he noted that immediate risks appear contained, with the situation in Venezuela suggesting a relatively swift resolution rather than a prolonged conflict.
Analysts also caution that the long-term impact of geopolitical shocks on gold prices tends to be shorter-lived than in other commodities. “Historical analysis shows that geopolitical events have a far more limited lasting impact on gold prices than, for instance, oil,” said Bernard Dahdah, an analyst at Natixis.
Geopolitics Continue to Support Gold’s Rally
Gold surged 64% last year, fuelled by a combination of geopolitical flashpoints and the US Federal Reserve’s monetary easing cycle. Expectations of further interest rate cuts, alongside sustained central bank buying and ETF inflows, have continued to underpin prices.
“The situation in Venezuela has clearly reactivated safe-haven demand, but it adds to an already complex backdrop of geopolitical risk, energy supply concerns and monetary policy uncertainty,” said Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.
Several major banks continue to forecast further gains in gold this year. With the Federal Reserve expected to deliver additional rate cuts and US President Donald Trump reshaping the leadership of the central bank, Goldman Sachs last month reiterated its base-case target of $4,900 per ounce, while noting upside risks.
“Another push toward fresh record highs could be triggered if geopolitical tensions broaden further, or if upcoming US economic data strengthens the case for more aggressive Fed easing,” Zumpfe added.
Beyond Venezuela, geopolitical rhetoric remained elevated over the weekend, with Trump reiterating ambitions related to Greenland and signalling potential action against Colombia and Mexico over illicit drug trafficking — developments that continue to keep gold firmly in focus for investors.
