Gold Gains as US Seizure of Venezuela’s Maduro Fuels Safe-Haven Demand
Gold Gains as US Seizure of Venezuela’s Maduro Fuels Safe-Haven Demand
Gold and silver prices moved higher after the United States captured Venezuelan President Nicolás Maduro, an event that raised concerns about geopolitical stability.
Investors shifted funds into safe-haven assets as uncertainty spread across global markets. Gold rose by about 2.2% to $4,424 (£3,292) an ounce. Silver recorded even stronger gains, climbing 3.9%.
The move came despite generally positive performance in equity markets across Europe and Asia.
Precious Metals Extend a Strong 2025 Run
Both gold and silver reached record highs earlier in 2025 before easing in the final days of the year. Even with that late pullback, gold still posted its strongest annual performance since 1979.
Prices rose more than 60% over the year. Gold reached an all-time high of $4,549.71 on 26 December.
Analysts attribute the rally to several factors. These include expectations of further interest rate cuts, strong purchases by central banks, and persistent global economic uncertainty.
Geopolitical tensions have also played a key role in driving investor demand for bullion.
Gold Gains as US Seizure of Venezuela’s Maduro Fuels Safe-Haven Demand
Oil Prices Ease Despite Venezuela Developments
Oil prices showed less reaction to events in Venezuela. Crude fluctuated in early trading before turning lower.
Brent crude slipped by 50 cents, or 0.8%, to $60.26 a barrel. Markets weighed whether US intervention would disrupt global supply.
President Donald Trump said Washington plans to tap Venezuela’s vast oil reserves. He added that the US would oversee the country during a transition period.
Industry analysts remain cautious. Many say the move is unlikely to affect fuel prices in the near term.
Venezuela’s Oil Sector Faces Long Recovery
Experts warn that reviving Venezuela’s oil industry would require heavy investment. Years of underfunding have left infrastructure in poor condition.
The country now produces only about 1% of global oil output, according to OCBC investment strategist Vasu Menon.
Former BP chief executive Lord Browne said restoring production would take time. He noted that output could even fall during the early stages of reorganisation.
While some production might return quickly, a full recovery remains a long-term challenge.
Markets Largely Shrug Off Political Shock
European stock markets opened higher despite the geopolitical tension. London’s FTSE 100 gained 0.3%, hovering near the 10,000 mark reached last week.
Defence stocks posted some of the strongest gains. BAE Systems rose 4.5%, while Babcock International added 3.6%.
Mining shares also benefited from higher metal prices. Fresnillo climbed 3.6% during the session.
Asian markets advanced as well. Japan’s Nikkei 225 rose 2.6% on the first trading day of the year after data showed manufacturing activity stabilised in December.
Indexes in South Korea and China also finished higher. According to eToro analyst Zavier Wong, investors believe the impact of events in Venezuela will remain limited.
