Gold Prices Surge Following US Capture of Venezuela’s Maduro
In the wake of the recent US capture of Venezuelan President Nicolás Maduro, gold prices have surged significantly. Investors are increasingly concerned about geopolitical risks, prompting a shift toward safe-haven assets.
Gold Prices Rise Amid Geopolitical Uncertainty
On Monday morning, gold was trading approximately 1.8% higher, reaching around $4,408 (£3,282) per ounce. Silver also saw a substantial increase of close to 3.5%. This trend marks a notable shift as investors seek stability amidst rising global tensions.
Record Performance of Precious Metals
Despite experiencing a dip at the end of last year, gold had its best annual performance since 1979, rising over 60%. It achieved an all-time high of $4,549.71 on December 26, 2025. This growth was driven by factors such as anticipated interest rate cuts and significant bullion purchases by central banks. Investors’ concerns about economic uncertainty also played a crucial role.
- Gold price on December 26, 2025: $4,549.71
- Annual increase in gold prices: Over 60%
- Silver price increase: Close to 3.5%
Impact on Oil Prices and Market Reactions
Meanwhile, crude oil prices remained relatively stable, with minor fluctuations observed during early trading. Analysts speculated about the potential effects of US intervention in Venezuela on global crude supplies. President Donald Trump has expressed intentions to leverage Venezuela’s oil reserves following Maduro’s capture, stating the US will oversee a careful transition in governance.
Despite this, industry experts caution that immediate changes in energy costs for consumers and businesses are unlikely. Repairing Venezuela’s oil infrastructure, which has deteriorated since the early 2000s, could require billions of dollars. Currently, Venezuela’s crude production accounts for about 1% of the global oil market, according to Vasu Menon, an investment strategist at OCBC Bank.
Regional Market Performance
Asian share markets showed an upward trend as investors focused on factors unrelated to Venezuela. For instance, Japan’s Nikkei 225 index rose by 2.6% in the first trading session of the year, bolstered by newly released data indicating that manufacturing activity stabilized in December. Additionally, major indexes in South Korea and China also reported gains.
Zavier Wong from the investment firm eToro attributed this positive market response to growing confidence that the repercussions from Venezuela’s situation would not significantly impact broader financial markets. Shigeto Nagai from Oxford Economics noted that the strong gains in Japan and South Korea primarily reflected an AI-driven rally that occurred in the US the previous Friday.
