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Gold Prices Surge as Venezuela Crisis Sparks Global Safe-Haven Demand

Gold Prices Surge as Venezuela Crisis Sparks Global Safe-Haven Demand. Source: Photo by Pixabay

Gold prices climbed sharply during Asian trading on Monday as investors rushed toward safe-haven assets following reports of a major U.S. military operation in Venezuela that led to the capture of President Nicolás Maduro. The geopolitical shock rattled global risk sentiment, driving strong demand for precious metals amid growing uncertainty over regional stability and energy markets.

Spot gold rose around 1% to trade near $4,375 per ounce by late U.S. hours, while U.S. gold futures for March delivery advanced roughly 0.8% to about $4,381. The jump reflects heightened investor caution after U.S. officials confirmed that Maduro was detained during a weekend raid in Caracas and transferred to the United States to face longstanding criminal charges. The operation represents the most direct U.S. intervention in Venezuela in decades and has drawn criticism from several countries, adding to broader market unease.

U.S. President Donald Trump described the capture as a decisive move against what he labeled a criminal regime, stating that Washington would support a safe and orderly political transition in Venezuela. Investors are now closely watching the potential fallout for oil markets, as Venezuela holds the world’s largest proven crude reserves. However, years of sanctions, political turmoil, and underinvestment have already constrained output, and the latest developments have increased uncertainty over near-term oil supply.

Beyond geopolitical tensions, gold continues to benefit from a supportive macroeconomic backdrop. Expectations of U.S. interest rate cuts later this year, ongoing central bank gold purchases, and persistent concerns about global economic growth have all underpinned bullion prices. These factors have reinforced gold’s appeal as a hedge against volatility, inflation, and currency risk.

Other precious metals also posted strong gains. Silver prices surged more than 2% to around $74 per ounce, while platinum futures jumped over 3% to roughly $2,210 per ounce, reflecting broad-based safe-haven buying across the commodities market.

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