Gold prices surged in early Asian trading on Monday as investors moved toward safe-haven assets following the detention of Venezuelan President Nicolás Maduro by the United States, an event that has intensified geopolitical uncertainty.
Spot gold climbed around 1.8% to trade near $4,408 an ounce, while silver prices advanced almost 3.5%. Market participants shifted funds into precious metals as concerns grew over potential political and economic fallout in Latin America.
Precious metals extend strong momentum
Gold and silver had already recorded historic highs during 2025 before easing slightly toward year-end. Despite the late pullback, gold posted its strongest annual performance since 1979, gaining more than 60% over the year and reaching a record peak of $4,549.71 on 26 December.
Analysts say the sustained rally has been driven by expectations of interest rate cuts, heavy bullion purchases by central banks and persistent worries about global economic stability.
Oil steady despite Venezuela uncertainty
Oil prices showed little reaction to the developments, fluctuating in early trading before edging slightly lower. Investors weighed whether Washington’s actions in Venezuela could disrupt crude supply in the near term.
US President Donald Trump said the US intends to take control of Venezuela’s oil assets following Maduro’s detention, pledging a managed transition period. However, energy experts argue that any meaningful increase in output would take years and require billions of dollars in infrastructure investment.
Venezuela currently produces roughly 1% of global oil supply, with output remaining subdued for more than a decade, according to Vasu Menon of OCBC Bank.
Asian stocks rise as focus shifts elsewhere
Equity markets across Asia-Pacific advanced as investors largely looked past the Venezuela situation. Japan’s Nikkei 225 jumped 2.6% on the first trading day of the year after data showed manufacturing activity stabilised in December.
Stock indexes in South Korea and China also posted gains, reflecting optimism that the geopolitical developments would have limited immediate impact on global growth.
Zavier Wong of eToro said markets appear confident that risks tied to Venezuela will remain contained. Meanwhile, Shigeto Nagai of Oxford Economics noted that gains in Japan and South Korea were largely supported by momentum from the recent AI-driven rally in US stocks.
