Gold prices surged during Asian trading hours on Monday following a US military operation in Venezuela that resulted in the arrest of President Nicolas Maduro. This news sparked heightened demand for safe-haven assets and a decline in risk appetite.
Spot gold was up about 1% at $4,374.92 per ounce. US gold futures for March delivery rose 0.8% to settle at $4,381.10 per ounce.
Markets reacted after US officials confirmed that Maduro had been detained during a weekend raid in Caracas and transported to the United States to face previously filed criminal charges.
The operation was the most direct US intervention in Venezuela in decades. It drew condemnation from several countries and left investors scrambling to assess its implications for energy markets and regional stability.
President Donald Trump called the arrest a “decisive step” against what he described as a criminal regime, saying the US intends to ensure “a safe and orderly transition” of power in Venezuela.
Although Venezuela holds the world’s largest proven oil reserves, years of sanctions and underinvestment have sharply curtailed production. US action has increased uncertainty over future oil supplies from the country.
For gold, the geopolitical shock has added to an already favorable backdrop: bets on US interest rate cuts this year, steady central bank purchases, and lingering worries about global growth continue to support the yellow metal. Among other precious metals, silver climbed by 2.4% to $74.32 per ounce, while platinum futures rose by 3.1% to $2,209.60 per ounce.
