Investors currently expect at least two rate cuts by the US Federal Reserve this year
[BENGALURU] Gold rose more than 1 per cent on Monday (Jan 5), while other precious metals surged after the United States captured Venezuelan President Nicolas Maduro over the weekend, escalating geopolitical tensions and lifting safe-haven demand.
As at 9.19 am, spot gold was up 1.5 per cent at US$4,395.35 per ounce, climbing to a more than one-week high. Bullion hit a record high of US$4,549.71 on Dec 26, 2025.
US gold futures for February delivery gained 1.8 per cent to US$4,405.40.
Bullion staged a stellar rally in 2025, ending the year up 64 per cent, its biggest annual gain since 1979, driven by interest rate cuts, safe-haven demand, and inflows into exchange-traded funds.
Investors currently expect at least two rate cuts by the US Federal Reserve this year.
The US captured Maduro on Saturday, in an operation that reportedly caused civilian deaths, while US President Donald Trump said Washington would take control of the country.
Vice-President Delcy Rodriguez, however, has taken over as interim leader with the backing of Venezuela’s top court and said that Maduro remains president.
The operation was Washington’s most controversial intervention in Latin America since the invasion of Panama 37 years ago.
Non-yielding assets tend to do well in a low-interest-rate environment and during times of geopolitical or economic uncertainty.
Spot silver added 4.5 per cent to US$75.86 per ounce, after hitting an all-time high of US$83.62 on Dec 29. Silver ended the year surging 147 per cent, far outpacing gold, in what was its best year ever on record.
Silver was propelled to fresh highs by its designation as a critical US mineral, supply constraints amid rising industrial and investment demand.
Spot platinum was up 1.5 per cent at US$2,175.15 per ounce, after rising to an all-time high of US$2,478.50 last Monday. It rose more than 5 per cent earlier in the session to a one-week high.
Palladium edged 0.4 per cent higher to US$1,645 per ounce. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
