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Precious metals rally on Venezuela turmoil
Gold and silver prices climbed sharply on Monday after the United States detained Venezuelan President Nicolás Maduro, heightening investor concerns over global stability.
Market reactions
Gold rose 2.2% to $4,424 per ounce (£3,292), while silver jumped 3.9% as traders shifted funds into traditional safe-haven assets. Both metals had reached record highs in 2025 before retreating slightly in late December.
Despite the year-end dip, gold posted its strongest annual performance since 1979, surging over 60% and peaking at $4,549.71 on 26 December. Analysts attributed the gains to expectations of interest rate cuts, central bank bullion purchases, and persistent geopolitical and economic uncertainties.
Oil prices retreat amid supply uncertainty
Crude oil prices fluctuated before settling lower as investors assessed the potential impact of Washington's intervention in Venezuela on global supplies. Brent crude fell 0.8%, or 50 cents, to $60.26 a barrel.
US President Donald Trump announced plans to exploit Venezuela's oil reserves following Maduro's detention, pledging to oversee the country's operations until a "safe, proper and judicious transition" could be arranged. However, industry experts cautioned that any immediate effect on energy prices would likely be limited.
"Reviving Venezuela's oil production would require a tremendous amount of skill, investment, and time," former BP chief executive Lord Browne told the BBC's Today programme.
Lord Browne, former BP CEO
Venezuela's oil infrastructure has deteriorated sharply since the early 2000s, with current output accounting for just 1% of global production, according to OCBC Bank investment strategist Vasu Menon. Lord Browne suggested that while some production might rebound quickly, overall output could decline during restructuring efforts.
Stock markets mixed as investors weigh risks
European equities opened higher, with the UK's FTSE 100 rising 0.3% and nearing the 10,000-point milestone reached on Friday. Defence contractors led gains, with BAE Systems up 4.5% and Babcock International climbing 3.6%. Mining firms also advanced, mirroring the rise in precious metals prices-Fresnillo rose 3.6%.
Asian markets posted broad gains as investors largely shrugged off the Venezuela developments. Japan's Nikkei 225 surged 2.6% on the first trading day of 2026, supported by data showing stabilising manufacturing activity in December. Major indexes in South Korea and China also closed higher.
Zavier Wong, an analyst at eToro, noted that the market's reaction reflected confidence that the fallout from Venezuela would remain contained.
