Precious metal prices climbed in early Asian trading after the US capture of Venezuelan President Nicolás Maduro heightened investor concerns about geopolitical risk, prompting a shift into assets seen as safer during periods of uncertainty.
Gold was about 1.8% higher at around $4,408 an ounce, while silver gained close to 3.5%, as investors moved money into traditional safe-haven holdings. The rise came despite both metals having retreated in the final days of last year after reaching record levels earlier in 2025.
Precious Metals Performance And Drivers
Gold and silver both reached record highs in 2025 before losing ground toward the end of the year. Even with that late decline, gold posted its strongest annual performance since 1979, rising by more than 60% over the year. It reached an all-time high of $4,549.71 on 26 December.
Analysts attributed the gains to a combination of factors, including expectations of further interest rate cuts, large-scale purchases of bullion by central banks, and sustained investor concern over global tensions and economic uncertainty.
Oil Prices And Venezuela’s Supply Impact
Crude oil prices were little changed in early Asian trade and edged slightly lower by mid-morning. Investors were assessing whether Washington’s intervention in Venezuela would have any near-term effect on global oil supplies.
US President Donald Trump said the US would tap Venezuela’s oil reserves after Maduro was seized and stated that the US would run the country until a “safe, proper and judicious transition” could take place.
Industry analysts, however, said the action was unlikely to immediately affect energy prices paid by consumers or businesses. Experts also noted that restoring Venezuela’s oil infrastructure would require billions of dollars, after years of decline dating back to the early 2000s.
Venezuela’s crude production has been weak for an extended period and now represents around 1% of global oil output, according to investment strategist Vasu Menon of OCBC.
Asia-Pacific Markets Look Elsewhere
Share markets across the Asia-Pacific region mostly moved higher, with investors focusing on factors unrelated to developments in Venezuela. Japan’s Nikkei 225 rose 2.6% on the first trading day of the year, supported by data showing manufacturing activity stabilised in December.
Major stock indexes in South Korea and China also recorded gains. Zavier Wong from eToro said the moves reflected confidence that any fallout from events in Venezuela would remain distant for regional markets.
Shigeto Nagai of Oxford Economics said strong gains in Japanese and South Korean shares mainly reflected momentum from an AI-led rally in US markets at the end of the previous week.
Featured image credits: Wikimedia Commons
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