Washington: Gold and silver prices surged in early Asian trade as investors sought safe-haven assets following the US capture of Venezuelan President Nicolás Maduro, a move that heightened geopolitical concerns.
Gold climbed about 1.8 percent to around $4,408 (£3,282) an ounce, while silver rose nearly 3.5 percent, as market participants shifted funds away from riskier assets. In contrast, crude oil prices were little changed, and share markets across much of the Asia-Pacific region traded higher.
Both precious metals had reached record highs in 2025 before easing in the final days of the year. Despite the late pullback, gold still recorded its strongest annual performance since 1979, gaining more than 60 percent over the year and touching an all-time high of $4,549.71 on December 26.
Analysts said expectations of further interest rate cuts, heavy bullion purchases by central banks, and persistent investor concerns over global tensions and economic uncertainty supported gold’s strong performance.
Oil prices fluctuated in early trade and edged slightly lower by mid-morning, as investors assessed whether Washington’s intervention in Venezuela would disrupt crude supplies. US President Donald Trump said the United States would tap into Venezuela’s vast oil reserves after seizing Maduro, adding that the US would run the country until it can do a safe, proper and judicious transition.
However, industry analysts noted that the move is unlikely to have an immediate impact on global energy prices. Experts also warned that restoring Venezuela’s oil infrastructure would require billions of dollars in investment, following years of decline.
Venezuela’s crude output has been weak for an extended period and currently accounts for only about 1 percent of global oil production, according to Vasu Menon, investment strategist at OCBC Bank.
Asian equity markets showed resilience, with investors largely focusing on factors unrelated to developments in Venezuela. Japan’s Nikkei 225 rose 2.6 percent on the first trading day of the year, supported by data showing manufacturing activity stabilised in December. Major indices in South Korea and China also posted gains.
Zavier Wong of investment firm eToro said the advances reflected confidence that any fallout from events in Venezuela would remain limited. Meanwhile, Shigeto Nagai of Oxford Economics said strong gains in Japan and South Korea were mainly driven by the AI-led rally seen in US markets at the end of last week.
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