Gold prices rise amid escalating Venezuelan crisis and increased demand for safe havens
Gold prices surged at the start of trading on Monday, fueled by escalating geopolitical tensions in Venezuela. The precious metal climbed more than 2% to surpass $4,420 an ounce, extending gains from the end of last week.
Gold futures also rose by about 2.4% to reach approximately $4,431.70 an ounce, as investors sought safe-haven assets following recent political and military developments in Latin America.
The ouster of Maduro increases political uncertainty
Gold's gains came after US President Donald Trump announced on Saturday that the United States would temporarily assume control of the Venezuelan government, following a large-scale military operation that resulted in the arrest of Venezuelan President Nicolás Maduro and his wife.
These developments have heightened political uncertainty regarding the future leadership in Venezuela, boosting demand for gold as a safe haven, even though the military operation itself has not yet caused significant disruptions in global markets.
Analysts believe that the widening scope of geopolitical instability in Latin America could prompt investors to increase their positions in precious metals in the coming period, as we mentioned here immediately after Maduro's arrest following US strikes on Venezuela – and the international reactions rejecting the aggression
Upcoming US Economic Data Could Impact Gold
Meanwhile, investors are awaiting a series of important US economic data releases this week, which could have a direct impact on gold price movements. These include:
- Institute for Supply Management (ISM) manufacturing data
- ADP employment figures for December
- Non-farm payrolls (NFP) report
- Unemployment rates and average hourly earnings
- Statements from several Federal Reserve officials
This data could provide clearer indications of the path of US interest rates in the coming period, a key factor in determining the direction of gold.
Gold closes 2025 with its strongest gains in over four decades
It's worth noting that precious metals recorded their strongest annual performance in 2025 since 1979, with gold reaching record highs several times, driven by several factors, most notably:
- Strong demand for safe havens
- Escalating global geopolitical tensions
- Accommodative monetary policy in the United States
- A weaker US dollar
- Continued purchases by central banks
- Strong inflows into gold-backed exchange-traded funds (ETFs).
Ultimately, the recent gains in gold prices reflect the continued positive momentum for the yellow metal at the start of 2026, amidst a global environment characterized by political and economic uncertainty.
As markets await upcoming US data, the outlook for gold remains positive in the near term, with the potential for continued volatility depending on developments in the geopolitical landscape and monetary policy.
