Gold prices climbed during Monday’s Asian trading, buoyed by geopolitical tensions following the United States’ strike on Venezuela.
Spot gold was up 2% to US$4,403.96 per troy ounce by 3:20 pm AEDT. Silver prices rose by 5.2% to $75.40 per ounce.
The U.S. captured Venezuelan President Nicolás Maduro and his wife Cilia Flores during a strike on the country on Saturday. Maduro and Flores have been taken to New York to stand trial on drug trafficking and weapons-related charges.
The attack follows a lengthy U.S. pressure campaign against Maduro, including an ongoing blockade of sanctioned oil tankers entering or exiting Venezuela. The U.S. Congress was not told about the strike, and United Nations secretary-general Antonio Guterres has said he is “deeply concerned that the rules of international law have not been respected”.
Gold’s price rose by around 65% in 2025, supported by geopolitical and economic uncertainty as well as central banks diversifying their assets.
Economic and geopolitical tensions often drive up gold’s price due to “its safe-haven status and ability to remain a reliable store of value,” JPMorgan Global Research analysts wrote.
“It has low correlation with other asset classes, so can act as insurance during falling markets and times of geopolitical stress.”
Gold prices will likely reach $5,000 per ounce by September 2026, UBS analysts have projected, and could rise as high as $5,400.
