Gold and silver prices jumped sharply on heightened geopolitical tensions following the United States’ capture of Venezuelan President Nicolás Maduro, prompting investors to seek refuge in safe-haven assets.
Gold climbed about 2.2% to trade at $4,424 (£3,292) an ounce, while silver surged 3.9%, as market participants shifted funds away from riskier assets amid growing uncertainty. The rally came despite a pullback in crude oil prices and mostly positive performances across European and Asian equity markets.
Both precious metals had hit record highs earlier in 2025 before easing slightly in the final days of last year. Even so, gold recorded its strongest annual gain since 1979, rising more than 60% in 2024, and reached an all-time high of $4,549.71 on December 26.
Analysts said the surge in gold prices has been driven by expectations of further interest rate cuts, sustained bullion purchases by central banks, and persistent investor anxiety over global geopolitical and economic risks.
Oil prices, meanwhile, were volatile in early trading before edging lower as markets weighed the potential impact of Washington’s intervention in Venezuela on global crude supply. Brent crude fell 50 cents, or 0.8%, to $60.26 a barrel.
US President Donald Trump has vowed to tap Venezuela’s vast oil reserves following Maduro’s capture, saying the United States would “run the country until such time as we can do a safe, proper and judicious transition.” However, analysts have played down the prospect of any immediate disruption to global energy markets.
Experts note that reviving Venezuela’s oil sector would require billions of dollars in investment to overhaul ageing and deteriorating infrastructure, which has been in decline since the early 2000s.
Investment strategist Vasu Menon of OCBC Bank said Venezuela’s crude production has remained “lacklustre” for years and now contributes only about 1% of global oil output.
Similarly, former BP chief executive Lord Browne told the BBC’s Today programme that restoring production would take “a tremendous amount of skill, investment and time.” While a modest short-term increase is possible, he warned that output could initially fall as the industry undergoes restructuring.
