Venezuela crisis may boost demand for safe-haven assets, gold and silver prices could rise

Mumbai (The Uttam Hindu): After a major geopolitical shock linked to Venezuela, the world’s largest oil reserve holder, the first full trading week of 2026 could remain tense for global markets.

Late Friday night, the United States reportedly launched a large-scale military operation in Venezuela and took President Nicolás Maduro and his wife into custody. Following this, US President Donald Trump stated that Venezuela is now under American control and will remain so until stability is restored. The US has accused President Maduro of involvement in drug trafficking, making the development a significant international event.

Following this escalation, investors have shifted their focus toward safe-haven assets such as gold and silver. Oil prices are also expected to rise due to fears of supply disruptions, while volatility may increase in the energy markets, pushing more investors toward safer investment options.

Gold had a strong start to 2026, with prices rising over 1 percent to around $4,370 per ounce, supported by global tensions and expectations of potential interest rate cuts in the United States this year.

Silver prices also climbed more than 2 percent, reaching close to $73 per ounce. Weakness in the US dollar, supply constraints, and rising industrial demand supported silver prices.

However, on a weekly basis, both metals saw profit booking after sharp gains last year. In the international market, gold declined by nearly 5 percent, while silver fell by over 8 percent during the week.

In India, MCX gold futures witnessed a sharp decline at the start of the week, marking the biggest single-day fall in the past two months. Prices later remained largely range-bound.

Experts believe that if gold prices hold above key support levels, they could resume an upward trend. A break below these levels, however, may lead to further downside.

Oil prices also moved higher at the start of the year. WTI crude closed the week near $57.3 per barrel. Oil prices had fallen nearly 20 percent in 2025 due to excess supply, but renewed tensions involving Venezuela and attacks on energy infrastructure amid the Russia-Ukraine conflict have increased risks in the oil market.

Base metals such as copper and aluminum also gained at the beginning of the year. Copper moved close to record highs, while aluminum crossed $3,000 per tonne for the first time since 2022, supported by strong demand from Asian markets.