Precious metals rally amid rising global uncertainty
Gold prices surged to their highest level in more than a week on Monday, moving closer to record territory as investors sought safety amid escalating geopolitical tensions linked to developments in Venezuela.
Spot gold climbed nearly 2% to trade above $4,410 an ounce, marking its strongest level since late December. The metal remains within striking distance of its all-time high, reflecting renewed demand for traditional safe-haven assets.
Geopolitical risks lift investor caution
Market sentiment shifted after heightened uncertainty surrounding US actions in Latin America, prompting investors to reduce exposure to riskier assets. Concerns over potential further escalation have reinforced gold’s appeal as a store of value during periods of instability.
Safe-haven demand has remained elevated as markets assess the broader implications for regional security, energy markets, and international relations. Investors are increasingly cautious about the risk of spillover effects that could impact global trade and growth.
Strong momentum following historic gains
Gold has already delivered exceptional performance over the past year, rising more than 60% and marking its strongest annual gain in decades. The rally has been supported by easing monetary policy expectations, central bank purchases, exchange-traded fund inflows, and persistent geopolitical risks.
With interest rate cuts still anticipated this year, gold continues to benefit from a lower-rate environment that reduces the opportunity cost of holding non-yielding assets.
Other precious metals also advance
Silver prices jumped sharply, rising more than 3% as the metal extended gains following its recent record highs. Silver has significantly outperformed other precious metals over the past year, driven by supply shortages and growing industrial demand.
Platinum and palladium also moved higher, supported by broader strength across the precious metals complex and renewed investor interest in hard assets amid macroeconomic uncertainty.
Outlook remains constructive
With geopolitical risks unresolved and monetary policy easing still expected, analysts believe gold demand could remain strong in the near term. While volatility is likely, the underlying environment continues to favor precious metals as investors prioritize capital preservation.
