Prime Highlights:
- Gold and silver prices jumped as investors moved funds into safe-haven assets following geopolitical tensions.
- Asia-Pacific stock markets remained resilient, with Japan’s Nikkei 225 rising 2.6% on the first trading day of the year.
Key Facts:
- Gold delivered its best annual performance since 1979, rising over 60% and reaching $4,549.71 in late December.
- Oil prices remained mostly unchanged, as Venezuela currently contributes only about 1% of global crude output.
Background:
Gold prices moved sharply higher in early Asian trading on Monday as investors sought safety following heightened geopolitical tensions triggered by the United States’ capture of Venezuelan President Nicolás Maduro.
The precious metal rose about 1.8% to trade near $4,408 an ounce, while silver posted even stronger gains, climbing close to 3.5%. The move reflected a renewed shift toward traditional safe-haven assets as markets assessed the implications of Washington’s dramatic intervention in Venezuela.
Despite a recent dip, gold had its best year since 1979, rising over 60% to $4,549.71 in December. The rise was due to expected rate cuts, central bank buying, and global economic concerns. Data released on Monday indicated that Japan’s manufacturing activity stabilized in December, offering additional support to investor sentiment. Markets in South Korea and China also recorded gains.
Gold and silver had both reached record highs in 2025 before easing toward the end of the year. Even after a recent dip, gold had its best yearly performance since 1979, rising over 60% and reaching $4,549.71 in late December. Experts say the increase was driven by expected interest rate cuts, central bank purchases, and worries about the global economy and politics.
Oil prices, on the other hand, changed little. Crude traded slightly lower by mid-morning as investors weighed whether developments in Venezuela would materially affect global supply. The US president has said Washington intends to tap Venezuela’s vast oil reserves and oversee a transition period following Maduro’s capture. However, industry experts have downplayed the likelihood of any immediate impact on energy prices.
Venezuela’s oil output has declined steadily for years and currently represents only about 1% of global production. Analysts also note that restoring the country’s aging oil infrastructure would require significant investment and time.
Market strategists said the muted response in equities suggests investors believe the broader economic fallout from Venezuela will remain contained. Strong gains in Japan and South Korea were also supported by momentum from last week’s AI-driven rally in US markets.
Overall, the session highlighted a familiar pattern: while geopolitical shocks drive demand for safe assets, global equity markets continue to focus on growth signals and monetary policy expectations.