There was a sharp rise in gold prices during trading in European markets on Monday, where investors have once again turned towards safe investments. The main reason for this is believed to be the military action taken by America in Venezuela, in which the detention of President Nicolas Maduro has been confirmed.
Let us tell you that the price of spot gold increased by about 2.4 percent to around $ 4,432 an ounce, while American gold futures for March delivery have also registered a rise of about 2.7 percent. According to available information, this surge has come at a time when last year there was some softening in gold prices due to profit booking, but now again investors’ confidence in the yellow metal seems to be returning.
It is noteworthy that during 2025, the prices of gold had increased by more than 60 percent and it had reached a record level of $ 4,549 per ounce. After this, profit booking put pressure on prices, but recent geopolitical events have again fueled the rise.
Risk appetite in global markets has weakened after US authorities confirmed that Maduro was captured during an operation in the Venezuelan capital Caracas and taken to the US. This is considered the most direct US intervention in Venezuela in decades, increasing uncertainty over Latin America’s stability and energy supplies.
Thomas Matthews, head of Asia Pacific at Capital Economics, says the near-term economic impact may be limited, but the geopolitical implications are significant and could keep the risk premium on regional assets high.
US President Donald Trump has described this action as a decisive step and said that America will ensure a safe and orderly transition of power in Venezuela. It is noteworthy that Venezuela has the world’s largest proven oil reserves, but due to years of sanctions and lack of investment, production has decreased significantly. In such a situation, this development has also raised new apprehensions regarding the supply of crude oil.
This environment is already considered favorable for sleeping. Expectations of a possible cut in US interest rates, continued buying by central banks and concerns over global economic growth have already supported bullion. The latest geopolitical tensions have further strengthened this support and investors continue to view gold as a safe haven option.
