Highlights
- Gold climbs 2.2 per cent to $4,424 per ounce and silver rises 3.9 per cent following Maduro's capture.
- Oil prices fall 0.8 per cent to $60.26 per barrel as markets assess impact on crude supplies.
- European and Asian stock markets mostly higher with defence and mining firms leading gains.
Precious metal prices have surged after the United States captured Venezuelan president Nicolás Maduro, prompting investors to seek refuge in safe-haven assets amid heightened geopolitical concerns.
Gold rose approximately 2.2 per cent to $4,424 (£3,292) per ounce, while silver climbed 3.9 per cent as money flowed into traditionally secure investments during periods of international uncertainty.
Both metals achieved record highs in 2025 before declining in the year's final days. Gold delivered its strongest annual performance since 1979, rising over 60 per cent and reaching an all-time peak of $4,549.71 on December (26).
The gains were driven by anticipated interest rate cuts, substantial central bank bullion purchases, and investor worries about global tensions and economic instability.
Oil and markets
Meanwhile, crude oil prices retreated as markets evaluated whether Washington's Venezuelan intervention would affect supplies. Brent crude fell 50 cents, or 0.8 per cent to $60.26 per barrel after early fluctuations.
President Donald Trump pledged to exploit Venezuela's vast oil reserves following Maduro's seizure, stating the US will "run the country until such time as we can do a safe, proper and judicious transition."
However, industry experts suggest the move will not immediately impact energy costs for consumers and businesses. Reviving Venezuela's oil infrastructure would require billions of dollars, having deteriorated significantly since the early 2000s.
Vasu Menon, investment strategist at OCBC bank, noted Venezuela's crude production has been "lacklustre" for years, now representing just 1 per cent of global oil output.
Lord Browne, former BP chief executive, told the BBC's Today programme that restoring Venezuelan oil production would demand "a tremendous amount of skill investment and time." While some production might see a "quick pick up," output could actually decline during industry reorganisation.
Stock markets across Europe opened higher, with the UK's FTSE 100 index rising 0.3 per cent near the 10,000 milestone first reached on Friday.
Defence firms BAE Systems and Babcock International climbed 4.5 per cent and 3.6 per cent respectively, while mining company Fresnillo gained 3.6 per cent following precious metals price increases.
Asian markets also advanced, with Japan's Nikkei 225 up 2.6 per cent on the year's first trading day. Zavier Wong from eToro suggested the gains reflect confidence that Venezuelan fallout will remain geographically distant.
