Gold prices climbed Monday along with other precious metals, after the United States captured Venezuelan President Nicolas Maduro over the weekend, escalating geopolitical tensions and fueling safe-haven demand.
As of 0742 GMT, spot gold rose 2.2% to $4,424.17 per ounce, a one-week high. U.S. gold futures for February delivery gained 2.4% to $4,434.20.
"The kidnapping of a foreign head of state naturally leads to high degrees of instability, and in this environment, gold and silver are viewed as a solid hedge against uncertainty," said Tim Waterer, KCM Trade's chief market analyst
Reutwrs reported.
On Saturday, the U.S.
captured Maduro in an attack that was Washington's most controversial intervention in Latin America since the invasion of Panama 37 years ago.
Vice President Delcy Rodriguez has taken over as interim leader and said that Maduro remains president.
Geopolitical tensions, combined with interest rate cuts, robust central bank purchases and inflows into exchange-traded funds contributed to bullion's 64% gains last year, its biggest annual gain since 1979
