At the close of trading on 5/1, spot global gold prices rose 117 USD to 4,448 USD per ounce. This marks its highest level since the 29/12 session.

"The situation in Venezuela clearly triggered safe-haven demand. Additionally, there are other geopolitical concerns, energy supply worries, and monetary policy issues," stated Alexander Zumpfe, a precious metals trader at Heraeus Metals Germany.

Global gold prices rose over 100 USD on 5/1. *Chart: Kitco*

US President Donald Trump warned of potential further attacks if Caracas obstructs US efforts to open oil markets and halt drug trafficking. He also disclosed upcoming actions regarding drug trade with Colombia and Mexico.

"Gold prices could reach new highs if political tensions escalate or if upcoming US economic data strengthens the Federal Reserve's (Fed) likelihood of easing more aggressively than anticipated," Zumpfe commented. Gold is a traditional store of value, performing well in low-interest-rate environments.

The situation in Venezuela also propelled US stocks higher. The DJIA index surged nearly 600 points to a record 48,977 points. The S&P 500 added 0.64% to 6,902 points. The Nasdaq Composite closed at 23,395 points, marking a 0.7% increase.

Energy stocks led the gains, as investors anticipate these companies will benefit from the potential rebuilding of Venezuela's oil sector. Chevron rose 5.1%, considered a major beneficiary due to its current presence in Venezuela. Exxon Mobil gained 2.2%. Shares of oilfield service firms like Halliburton and SLB increased by 7.8% and nearly 9% respectively.

Later this week, the market awaits the US december jobs report. Investors currently expect the Fed to cut interest rates two times this year.

Other precious metals also saw price increases during the first trading session of the week. Silver rose 5.2% to 76,3 USD per ounce. Platinum gained 5.9% to 2,269 USD. Palladium climbed 3.4%, closing at 1,694 USD.

Ha Thu (according to Reuters, Kitco)