Gold Rises On Haven Demand After US Captures Venezuelan Leader
Gold posted its best annual performance since 1979 last year, hitting a series of records with support from central-bank buying, easing Federal Reserve policy and a weaker US dollar.
Gold and silver rose, with investors seeking the safety of precious metals amid heightened geopolitical risk following the US capture of Venezuelan leader Nicolás Maduro.
Spot gold climbed as much as 0.9% in early trading on Monday, advancing above $4,370 an ounce. President Donald Trump said the US plans to “run” Venezuela after ousting Maduro, leaving uncertainty over the future governance of the South American country. Secretary of State Marco Rubio said Washington would use leverage over oil to force further change.
“Markets are now forced to reprice not just Venezuela risk but US unpredictability, military reach,” Nicky Shiels, head of research at precious metals refiner MKS Pamp SA, said in a note.
Gold posted its best annual performance since 1979 last year, hitting a series of records with support from central-bank buying, easing Federal Reserve policy and a weaker US dollar. Demand for haven assets, driven by geopolitical tensions and trade frictions, has also buoyed prices, although there was significant volatility in late December as some investors booked profits and trading metrics pointed to overbought conditions.
Silver rallied even more than gold last year, blowing through levels that until recently seemed unthinkable to all but the most enthusiastic of market watchers. In addition to the factors that aided gold, silver has also benefited from sustained concerns that the US administration could eventually impose import tariffs on the refined metal.
Gold rose 0.7% to $4,363.57 as of 7:45 a.m. Singapore time. Silver advanced 0.7% to $73.32. Platinum and palladium also gained. The Bloomberg Dollar Spot Index ended the earlier session up 0.1%.
