Gold and silver rallied early Monday on haven demand hitting a one-week high after the U.S. deposed Venezuelan President Nicolas Maduro over the weekend, transporting him and his wife to New York to face U.S. drug and weapons charges.
The strike on Venezuela added to geopolitical uncertainty that helped gold and silver post their best annual performances in decades last year.
February gold futures fell 4.9% last week to settle at $4,329.60 an ounce on Comex, after the most-active contract retreated 0.3% Friday. Most global financial markets were closed Thursday for New Year’s Day. Bullion rose 2% in December after gaining 6.5% in November and increasing 3.2% in October. It rallied 64% last year. The metal rose 27% in 2024. The February contract is currently up $99.90 (+2.31%) an ounce to $4429.50 and the DG spot price is $4431.90.
March silver futures tumbled 8% last week to settle at $71.02 an ounce on Comex, though the most-active contract rose 0.6% Friday. The white metal hit a series of record highs last month. Silver soared 24% in December after increasing 19% in November and rising 3.3% in October. It climbed 141% last year after rising 21% in 2024. The March contract is currently up $5.230 (+7.36%) an ounce to $76.245 and the DG spot price is $76.49.
U.S. President Donald Trump said Saturday that the U.S. will “run” Venezuela without saying how long the U.S. will oversee the country. He said the oil industry would “make a lot of money” under U.S. leadership. Secretary of State Marco Rubio said Sunday that the administration will use “leverage” to advance U.S. interests in Venezuela and keep a military quarantine of the country and its oil industry in place. Madero aides, meanwhile, said that they remained in charge of the country.
Gold is a traditional hedge against geopolitical and economic uncertainty. Traders in the yellow metal are also closely watching for signals out of the Federal Reserve about potential interest rate cuts this year. Lower interest rates are typically bullish for precious metals, making them a more attractive alternate investment. The Fed reduced interest rates for a third consecutive time last month to 3.50% to 3.75%.
Key economic data this week includes U.S. jobs reports for December. The Fed closely watches jobs and inflation data when setting monetary policy.
Almost 84% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting at the end of January, according to figures tracked by the CME FedWatch Tool. About 16% expect another 25 basis point cut. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
Spot palladium tumbled 15% last week to $1,645.50 an ounce but gained 1.9% Friday. Palladium rose 11% last month after adding 0.5% in November and rising 14% in October. Palladium gained 74% last year after dropping 17% in 2024. Currently, the DG spot price is up $89.50 an ounce to $1751.00.
Spot platinum slid 12% last week to $2,136.40 an ounce but rallied 5.4% Friday. It surged 22% in December after climbing 4.7% in November and rising 1% in October. Platinum increased 122% in 2025 after losing 8.4% in 2024. The DG spot price is currently up $144.20 an ounce to $2277.20.
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