Precious metal prices rose sharply on Monday. Specifically, investors reacted to the U.S. capture of Venezuelan President Nicolás Maduro. Consequently, gold jumped 2.2% to $4,424 an ounce, while silver surged 3.9%. Both metals benefited from a flight to safe-haven assets as geopolitical uncertainty intensified.
Earlier in 2025, gold and silver hit record highs. Yet they pulled back slightly in the final days of the year. Even so, gold posted its strongest annual gain since 1979—rising more than 60%. In fact, it peaked at $4,549.71 on December 26.
These gains stemmed from several key drivers. First, investors expected central banks to cut interest rates. Second, global institutions bought large amounts of bullion. Moreover, ongoing tensions and economic instability further boosted demand for safety.
Meanwhile, oil prices moved in the opposite direction. Brent crude fell 50 cents (0.8%) to $60.26 a barrel. Traders carefully weighed whether Washington’s intervention would disrupt supply.
President Donald Trump vowed to “run” Venezuela and unlock its vast oil reserves. However, analysts doubt this will affect energy costs in the near term. After all, Venezuela’s output has been “lacklustre” for years, according to Vasu Menon of OCBC Bank. Today, it accounts for only about 1% of global supply.
Furthermore, reviving the sector would require billions of dollars and many years. Former BP CEO Lord Browne explained that while some production might return quickly, overall output could actually dip during reorganization.
In contrast, stock markets showed resilience. European indexes opened higher on Monday. The UK’s FTSE 100 rose 0.3% and hovered near the 10,000 mark. Notably, defense stocks led the rally—BAE Systems climbed 4.5%, and Babcock International rose 3.6%.
Mining firms also gained ground. Fresnillo jumped 3.6%, directly benefiting from higher precious metal prices.
Similarly, Asian markets advanced despite the Venezuela news. Japan’s Nikkei 225 rose 2.6% on its first trading day of 2026. This followed new data showing that manufacturing activity had stabilized in December. South Korea and China also posted gains.
“Investors believe the fallout from Venezuela will remain distant,” said Zavier Wong of eToro. Indeed, equities climbed while gold and silver rose—a clear sign of cautious hedging rather than panic.
For now, two narratives coexist. On one hand, optimism supports risk assets. On the other, fear lifts safe havens. As geopolitical tensions persist, this dual trend may shape early 2026 market behavior.
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