Precious metal prices jumped sharply on Monday as investors reacted to rising geopolitical tensions following the United States’ capture of Venezuelan President Nicolás Maduro.
In early Asian trading, gold rose by about 1.8% to around $4,408 an ounce, while silver surged nearly 3.5%, as investors moved money into so-called safe-haven assets amid uncertainty. Safe havens such as gold typically attract demand during periods of political instability, conflict, or economic stress.
Safe-Haven Demand Returns
The spike comes after reports that the US carried out a large-scale operation in Venezuela, capturing Maduro and announcing plans to oversee a political transition in the country. The development has added a new layer of uncertainty to already fragile global geopolitics, prompting investors to seek protection in assets perceived as more stable.
Both gold and silver had already enjoyed a strong run in 2025, hitting record highs earlier in the year before retreating slightly toward the end of December. Despite that late dip, gold still recorded its best annual performance since 1979, gaining more than 60% and reaching an all-time high of $4,549.71 on December 26.
Analysts say the rally in precious metals has been driven by a mix of factors, including expectations of further interest rate cuts, heavy central bank gold purchases, and persistent worries about global economic and political risks.
Oil Prices Hold Steady
While precious metals surged, crude oil prices were relatively stable, fluctuating in early trading before edging slightly lower by mid-morning. Investors are still assessing whether Washington’s intervention in Venezuela — home to some of the world’s largest oil reserves — will significantly affect global oil supply.
US President Donald Trump has said the United States intends to tap into Venezuela’s oil sector, pledging that American oil companies will help rebuild the country’s battered energy infrastructure. However, energy experts say any meaningful increase in output is unlikely in the short term.
Venezuela’s oil production has been in long-term decline and now accounts for around 1% of global output, according to investment strategist Vasu Menon of OCBC Bank. Former BP chief executive Lord Browne also noted that reviving the sector would require billions of dollars, extensive expertise, and time, adding that production could even fall initially during restructuring.
Asian Markets Largely Unfazed
Meanwhile, Asia-Pacific stock markets mostly posted gains, suggesting investors believe the fallout from events in Venezuela will remain contained. Japan’s Nikkei 225 jumped 2.6% on the first trading day of the year, supported by data showing manufacturing activity stabilised in December.
Markets in South Korea and China also advanced. Analysts said the gains were driven more by global tech optimism than by developments in Latin America. According to Zavier Wong of eToro, investors appear confident that Venezuela-related risks will have limited impact on Asian economies.
Oxford Economics’ Shigeto Nagai added that strong performances in Japan and South Korea largely reflected momentum from an AI-led rally in US markets late last week.
Outlook
For now, precious metals remain the biggest beneficiaries of heightened global uncertainty. Analysts say gold and silver could continue to attract demand if geopolitical tensions persist or escalate, even as equity markets in some regions remain resilient.
As investors navigate an increasingly complex global landscape, the renewed rush toward safe havens underscores how quickly sentiment can shift in response to major political events.
