Gold prices surged sharply in early trade on Monday, January 5, as heightened geopolitical tensions boosted safe-haven demand following the US capture of Venezuelan President Nicolas Maduro over the weekend.
On the Multi Commodity Exchange (MCX), gold February futures were trading 1.5 percent higher at ₹1,37,750 per 10 grams around 9:05 am. Silver prices saw even stronger gains, with MCX silver March futures jumping 4.3 percent to ₹2,46,380 per kg.
Despite the sharp rally, both precious metals remain below their record highs hit in December 2025. Gold had earlier touched ₹1,40,465 per 10 grams, while silver had surged to ₹2,54,174 per kg.
The spike in prices followed the Venezuela events triggering fresh concerns over global stability. Precious metals traditionally gain during periods of geopolitical uncertainty, as investors seek safe assets to hedge against market volatility.
In international markets, spot gold rose 1.5 percent to $4,395.35 per ounce, while February gold futures climbed over 2 percent to $4,418.15 per troy ounce.
Analysts said the Venezuela developments have added to an already supportive backdrop for gold. Uncertainty surrounding Russia-Ukraine peace talks, expectations of further US Federal Reserve rate cuts, sustained central bank buying, and steady retail demand are all lending support to prices.
Manoj Kumar Jain of Prithvifinmart Commodity Research said geopolitical risks and safe-haven buying are likely to keep prices supported at lower levels. He also pointed out that weakness in the rupee has provided additional support to domestic gold prices.
However, gains could be capped if the US dollar strengthens further. The dollar index climbed to a two-week high, making gold costlier for overseas buyers.
Market participants are now awaiting key US macroeconomic data this week, including ISM manufacturing numbers, ADP employment data, JOLTS job openings, and the non-farm payrolls report, which could provide further clarity on the US interest rate outlook.
(By arrangement with livemint.com)
