Gold Hits $4,400 as Venezuelan Oil Blockade Sparks Market Surge

Gold prices touched an historic high of $4,400 per ounce due to an oil blockade in Venezuela. The unfulfilled demand for crude oil has had an impact on worldwide trading and raised oil prices. However, gold has become the main safe heaven asset due to concerns regarding geopolitics.

This is because shipping shortages attributable to the blockage of ports have put pressure on oil logistics schedules, with waiting ships in deep waters or turning back, thus contributing to market volatility. Under these circumstances, gold has reaffirmed its function of hedging an investment portfolio amidst uncertainty.

Tokenized gold investments such as Tether Gold (XAU₮) and PAX Gold (PAXG) have also witnessed an increased demand, providing investors with an alternative and electronic form that can be accessed anytime and anywhere instead of physical gold.

Investors have been layering their portfolios with a mix of physical gold, tokenized gold, and Bitcoin. While the latter provides liquidity and portability, the former provides sovereignty and decentralization and is thus a hedge stack for volatile markets.

The Venezuelan oil blockade is one example that underlines the changing nature of safe-haven instruments, with conventional gold and digital currencies drawing closer together in the midst of global uncertainties.

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