Venezuela crisis may catapult demand for precious metals

Global markets are set to begin the first full trading week of 2026 on edge after a major geopolitical shock involving Venezuela, a country with the world’s largest oil reserves. Investor focus has shifted sharply to safe-haven assets like gold and silver, while oil prices are expected to move higher amid fears of supply disruptions.

Markets turned cautious after US forces captured Venezuelan President Nicolás Maduro and his wife during a military operation over the weekend. The US has charged them with drug trafficking, escalating tensions in an already fragile region. The development is being seen as a major geopolitical event that could unsettle energy markets and increase demand for safe assets at the start of the year.

Gold began 2026 on a strong note, rising over 1 percent to trade near $4,370 per ounce, supported by geopolitical risks and expectations that US interest rates may ease later this year.