Gold prices soared on Monday amid strong safe-haven demand following U.S. action in Venezuela.
Spot gold jumped 2.4 percent to $4,432.60 an ounce while U.S. gold futures were up 2.7 percent at $4,447.75.
Investors weighed heightened geopolitical risks after the U.S. attacked Venezuela and captured its president, Nicolas Maduro.
The secretary of state said the United States will retain “multiple levers of leverage” if Venezuela’s leaders don’t “make the right decisions”.
Also, President Donald Trump raised the possibility of military action in Colombia and warned Mexico ‘to get their act together.’
Investors also shifted focus to upcoming U.S. economic data that could influence Federal Reserve policy.
The dollar rose while U.S. 10-year bond yields were steady ahead of December’s jobs report along with JOLTS and ADP employment figures, ISM PMIs, and the Michigan consumer confidence survey results due this week.
Fed Chair Jerome Powell’s term ends in May, with four people on President Trump’s short list to replace him. Traders currently expect two Fed rate cuts this year, despite the Fed projecting only one.
Philadelphia Fed President Anna Paulson said on Saturday that some modest further adjustments to the funds rate would likely be appropriate later in the year depending on the economic performance.
Gold Prices Rally On Safe Haven Demand
2026-01-05 09:54:04
