Gold Surges on Venezuela Crisis as Safe-Haven Demand Intensifies
Gold prices jumped to a fresh record as geopolitical tensions triggered by events in Venezuela pushed investors toward safe-haven assets.
Gold prices surged to a new record on Monday as rising geopolitical tensions linked to Venezuela drove investors toward safe-haven assets, underscoring gold’s role as a defensive store of value during periods of uncertainty.
The rally followed reports that the United States removed Venezuelan President Nicolás Maduro from power through military action, a move that has heightened concerns over regional stability in Latin America. The development sparked a flight to safety across global markets, with gold emerging as a key beneficiary.
In early Asian trading, spot gold climbed 1.8% to reach a fresh high of $4,410 per ounce, reflecting strong demand amid escalating geopolitical risk. Analysts noted that the surge was not merely a short-term reaction but a reflection of broader concerns about potential diplomatic conflicts and prolonged instability in the region.
Market strategists said investors are increasingly pricing in geopolitical risk premiums as uncertainty deepens. According to Capital Economics, market participants are responding not only to a single political event but also to shifting power dynamics in Latin America that could carry long-term implications for global stability.
With political clarity around Venezuela still lacking, analysts expect gold prices to remain elevated or move even higher in the coming sessions. Any escalation of tensions into neighboring countries or failure of diplomatic efforts could push prices beyond current record levels.
The global rally has already spilled over into Nepal’s domestic market. On Monday, gold prices in Nepal rose sharply, gaining Rs 4,600 per tola to trade at Rs 265,000, signaling the direct transmission of global geopolitical risk into local bullion prices.