Gold prices rose in Asian trading on Monday following a US military operation in Venezuela and the arrest of President Nicolás Maduro.
Venezuela possesses the world’s largest oil reserves, but years of sanctions and underinvestment have severely hampered production. The US actions increased uncertainty regarding the country’s short-term crude oil supply.
For gold, this increased tension further strengthened an already favorable environment. Gold prices have been rising due to expectations of US interest rate cuts later this year, continued purchases by central banks, and persistent concerns about global growth.
