Gold surges as US capture of Venezuela president spurs safe-haven demand

By Admin

05 Jan, 2026

Introduction
Gold prices jumped sharply on Monday as global investors rushed toward safe-haven assets following the United States’ capture of Venezuelan President Nicolas Maduro over the weekend. The unexpected geopolitical development heightened global uncertainty, pushing precious metals higher amid already supportive macroeconomic conditions.

Geopolitical Shock Drives Market Reaction
According to Reuters, the U.S. captured President Nicolas Maduro on Saturday in an operation that reportedly led to civilian casualties. While Venezuela’s Vice President Delcy Rodriguez has assumed the role of interim leader, she stated that Maduro remains the country’s president.
This escalation in geopolitical tensions immediately rattled financial markets, triggering a strong demand for assets traditionally viewed as safe during periods of political instability.

Gold Prices Hit One-Week High
As of 0312 GMT on January 5, spot gold climbed 1.9% to $4,411.14 per ounce, marking a one-week high. U.S. gold futures for February delivery also advanced, gaining 2.1% to trade at $4,419.90 per ounce.
Tim Waterer, Chief Market Analyst at KCM Trade, noted that the events in Venezuela have reignited safe-haven demand, with gold and silver emerging as key beneficiaries as investors seek protection against rising geopolitical risks.

Broader Factors Supporting Bullion
Gold’s latest rally builds on a powerful upward trend seen last year. Bullion recorded a massive 64% gain in 2025, its strongest annual performance since 1979, and reached a record high of $4,549.71 on December 26, 2025.
This surge has been driven by a combination of geopolitical tensions, aggressive interest rate cuts, strong central bank buying, and steady inflows into gold-backed exchange-traded funds.

Interest Rate Outlook in Focus
While Federal Reserve Bank of Philadelphia President Anna Paulson indicated that further rate cuts could be some distance away after last year’s easing cycle, market expectations remain optimistic. Investors are still pricing in at least two U.S. Federal Reserve rate cuts this year.
Market participants are now closely watching the upcoming U.S. non-farm payroll data due Friday, which could offer fresh clues on the future path of interest rates.

Silver Outshines with Record Performance
Silver prices posted even stronger gains than gold. Spot silver jumped 4.4% to $75.82 per ounce, after having touched an all-time high of $83.62 on December 29. Silver ended last year with an extraordinary 147% surge, making it the best-performing year on record.
The rally has been fueled by silver’s designation as a critical U.S. mineral, ongoing supply constraints, and rapidly rising industrial and investment demand.

Platinum and Palladium Also Advance
Other precious metals joined the rally. Spot platinum rose 2.2% to $2,190.55 per ounce, after previously hitting a record high of $2,478.50. Palladium also gained, climbing 1.8% to $1,667.45 per ounce.
These gains reflect a broader shift toward non-yielding assets, which typically perform well during periods of low interest rates and heightened geopolitical or economic uncertainty.

Conclusion
The capture of Venezuela’s president has added a new layer of global risk, reinforcing gold’s role as a safe-haven asset. With geopolitical tensions, interest rate expectations, and strong investment demand all aligning, precious metals remain firmly in focus for investors navigating an increasingly uncertain global landscape.