New Delhi, Jan. 5 -- Escalating tensions between the US and Venezuela have further aggravated the rally in gold prices. The yellow metal climbed by over Rs.2,000, or 1.5%, to Rs.1,38,270 per 10 grams in the domestic spot market in intraday trade on Monday, 5 January. Silver prices saw even steeper gains of 3% to trade at Rs.2,43,530 per kg.

Gold prices tend to rise during periods of geopolitical uncertainty. However, the sharp rally over the past year has raised questions about how much further the yellow metal can climb and whether a deeper correction is imminent.

Over the last one year, gold has surged over 78% on central bank buying, US Fed rate cuts, geopolitical uncertainties, and strong inflows in exchange-traded funds (ETFs). Sil...