Gold prices gain over Rs. 10,000

• World gold prices surge to new highs amidst US-Venezuela tensions
• Prices likely to cool off in coming days as market slows down for holiday season
• Next target for gold prices in 2026 to be $ 5,000 per ounce level

Local gold prices gained over Rs. 10,000 during the preceding week as world gold prices surged to new highs amidst increasing tensions between the US and Venezuela.   

Speaking to The Sunday Morning Business, Inamul Hassan of We Buy Gold revealed that during the preceding week, gold prices had shot up by around Rs. 10,000 due to a sudden surge in the world market.

He revealed that as of Tuesday (23), local gold prices had reached Rs. 340,000 for 24 carat 8 g (1 sovereign) of gold, whilst the 22 carat 8 g (1 sovereign) was at around Rs. 315,000.  

However, he opined that gold prices were likely to cool off in the coming days as the market slowed down for the holiday season.

Hassan further noted: “Gold purchases are down due to the high prices. While gold prices have fluctuated, the general trend has been upwards, so it’s a seller’s market now.”

According to Reuters, spot gold prices in the international market reached an all-time high of $ 4,441.92 per ounce on Monday (22), driven by safe-haven demand amid escalating tensions between the US and Venezuela.

Speaking to Reuters, an analyst at Nemo.Money stated: “Support in the near term is coming from raised geopolitical tensions between the US and Venezuela. Gold prices have been hovering just below record highs in recent sessions, so this looks like a simple textbook momentum break to the upside after recent bullish consolidation, in holiday markets with less volume.”

Speaking to Reuters, industry experts claimed that the next target for gold prices in 2026 would be the $ 5,000 per ounce level.

Last week, US President Donald Trump announced what he described as a “blockade” on all sanctioned oil tankers entering or leaving Venezuela, resulting in millions of barrels of Venezuelan oil being stranded aboard ships. As tensions between the two countries escalated, Russia and China publicly expressed their support for Venezuela.

Reuters further reported that the surge in gold prices was influenced by speculation that Trump may appoint a new Federal Reserve Chair as early as January 2026, ahead of Jerome Powell’s scheduled retirement in mid-2026. Markets are closely watching these developments amid expectations that a new appointee could be more aligned with the US President’s push for further interest rate cuts.

Gold, which is widely regarded as a safe-haven asset, typically performs well during periods of geopolitical and economic uncertainty. The metal has climbed more than 69% so far this year according to Reuters, marking its strongest annual gain since 1979, driven by robust central bank purchases, heightened safe-haven demand, and a lower interest rate environment.

Source: The morning