NEW DELHI — Gold and silver prices surged on Monday as escalating geopolitical tensions pushed investors toward safe-haven assets, with precious metals rallying sharply after developments involving the United States and Venezuela over the weekend.
Gold futures on the Multi Commodity Exchange opened higher, with the February contract starting at Rs 1,36,300 per 10 grams compared with the previous close of Rs 1,36,761. Prices continued to rise through the session, touching an intraday high of Rs 1,38,200, a gain of Rs 2,439.
By 8:45 p.m., MCX gold was trading at Rs 1,37,798 per 10 grams, up Rs 2,037, or 1.50 percent. In overseas markets, spot gold climbed 2.3 percent to $4,425 per ounce.
Silver prices also posted strong gains after a muted close on Friday. The March silver futures contract on MCX surged by Rs 13,584 per kilogram to reach a session high of Rs 2,49,900, compared with the previous close of Rs 2,35,873.
Other precious metals also attracted buying interest, with platinum rising 5.3 percent and palladium gaining 5 percent during the session.
Market participants attributed the rally largely to heightened geopolitical uncertainty following reports of a U.S. military operation in Venezuela. According to reports, U.S. forces carried out an operation over the weekend that resulted in the capture of Venezuelan President Nicolás Maduro and his wife, who were allegedly taken to New York to face charges including narco-terrorism conspiracy and other criminal offenses.
Although Venezuela has been grappling with a weak economy and prolonged hyperinflation, the military action has raised broader global concerns, driving investors toward traditional safe-haven assets such as gold and silver. Venezuela’s vast crude oil reserves add to the geopolitical significance of the situation.
U.S. President Donald Trump said on Saturday that Washington would “run” Venezuela until a political transition is completed, comments that came hours after U.S. forces bombed the country. He also said American oil companies would invest billions of dollars to repair Venezuela’s damaged oil infrastructure and extract its oil resources.
The combination of geopolitical risk and uncertainty over energy markets continued to underpin demand for precious metals as the new trading week began. (Source: IANS)
