Precious metal prices rose sharply following the US capture of Venezuelan President Nicolás Maduro, as investors grew concerned about geopolitical risks.
In Monday morning trade in Asia, gold rose about 1.8% to around $4,408 (£3,282) an ounce, while silver gained nearly 3.5%, as investors sought so-called “safe-haven” assets. Crude oil prices were largely unchanged, and regional share markets were mostly higher.
Both gold and silver reached record highs in 2025 before retreating in the final days of the year. Despite the recent dip, gold still posted its best annual performance since 1979, climbing more than 60% to an all-time high of $4,549.71 on 26 December. Analysts attribute the gains to expectations of further interest rate cuts, major bullion purchases by central banks, and investor concerns over global tensions and economic uncertainty.
Oil prices fluctuated in early trading, dipping slightly by mid-morning as investors weighed the potential impact of Washington’s intervention in Venezuela on crude supplies. US President Donald Trump said the US would “run the country until such time as we can do a safe, proper and judicious transition” and vowed to tap Venezuela’s vast oil reserves. However, industry analysts say this is unlikely to affect energy costs immediately, citing billions of dollars needed to repair Venezuela’s declining oil infrastructure. Venezuela currently produces only about 1% of global oil output, according to OCBC investment strategist Vasu Menon.
Share markets in the Asia-Pacific region also rose, with Japan’s Nikkei 225 up 2.6% on the first trading day of the year. New data showed manufacturing activity stabilised in December. Major indexes in South Korea and China were also higher. Analysts attribute these gains to investor confidence that the fallout from Venezuela will be limited, and to the ongoing AI-driven rally in the US.
Source: BBC
