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Gold prices rose sharply on global markets on Monday as escalating U.S. actions involving Venezuela heightened geopolitical uncertainty, prompting investors to seek refuge in safe-haven assets. The move underscored gold’s traditional role as a hedge during periods of political and economic stress.
Market sentiment turned cautious after reports of renewed U.S. legal and diplomatic pressure linked to Venezuela, including developments involving senior figures from the South American nation. The situation added to existing global concerns, encouraging investors to reduce exposure to riskier assets such as equities and move funds into gold.
Analysts said the rise in gold prices was driven by a combination of geopolitical tension and broader macroeconomic uncertainty. “Any escalation involving U.S. foreign policy and sanctions tends to lift haven demand,” said a commodities analyst. “Gold benefits immediately when investors look to protect portfolios from sudden volatility.”
The rally in bullion was also supported by a softer U.S. dollar and expectations that major central banks may adopt a cautious stance on interest rates amid slowing global growth. Lower interest rates generally make non-yielding assets like gold more attractive.
Silver and other precious metals also edged higher, tracking gold’s gains, while equity markets showed mixed performance as investors weighed the implications of the Venezuela-related developments.
Going forward, traders are expected to closely monitor geopolitical headlines, U.S. policy signals, and upcoming economic data for further cues. Analysts noted that if tensions persist or intensify, gold could remain well supported in the near term as risk aversion continues to shape market behavior.
