NEW DELHI– Gold and silver prices began the week with strong gains on Monday as heightened geopolitical tensions pushed investors toward safe-haven assets.
Precious metals advanced sharply after reports of a U.S. military operation in Venezuela over the weekend added fresh uncertainty to the global geopolitical environment, encouraging risk-averse positioning across markets.
On the Multi Commodity Exchange, February gold futures opened higher at Rs 1,36,300 per 10 grams, compared with the previous close of Rs 1,36,761. Prices extended gains during the session, touching an intraday high of Rs 1,38,200, an increase 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 international markets, spot gold climbed 2.3 percent to $4,425 per ounce.
Silver prices also posted strong gains after a subdued close on Friday. The March silver futures contract on MCX surged by Rs 13,584 per kilogram to a day’s high of Rs 2,49,900, compared with the previous close of Rs 2,35,873.
Other precious metals participated in the rally as well, with platinum rising 5.3 percent and palladium gaining 5 percent, reflecting broad-based safe-haven buying.
Market sentiment was influenced by escalating tensions between the United States and Venezuela. Over the weekend, U.S. forces reportedly carried out a military operation in Venezuela and detained President Nicolás Maduro and his wife, who were said to have been 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 reported military action has raised wider global concerns, increasing demand for assets traditionally viewed as stores of value. Venezuela’s large crude oil reserves add to the geopolitical significance of the situation.
U.S. President Donald Trump said on Saturday that Washington would oversee Venezuela until a political transition is completed, comments that followed reports of U.S. strikes on the country. He also said American oil companies would invest billions of dollars to rehabilitate Venezuela’s oil infrastructure and develop its energy resources. (Source: IANS)
