Investors scrambled for traditional safe havens on Monday, 5 January 2026, driving up the prices of precious metals in the wake of a dramatic geopolitical escalation by former US President Donald Trump in Venezuela.
Metals Market Reaction to Geopolitical Shock
The immediate financial fallout from the US capture of Venezuelan President Nicolas Maduro was most pronounced in the commodities market. Gold prices rose by 2.4%, hovering near an all-time high of $4,435 per ounce. Silver saw an even sharper increase, climbing approximately 5% to over $76 an ounce, while copper gained around 3%.
Analysts were quick to link the surge to investor anxiety. Russ Mould, investment director at AJ Bell, explained that investors often turn to gold during worrying headlines, as it is seen as a reliable store of value in turbulent periods. Ipek Ozkardeskaya, a senior analyst at Swissquote, noted it was unsurprising to see these metals enjoying a positive run given the circumstances.
Contrasting Response in Oil and Equity Markets
In stark contrast to the metals, the initial reaction in the oil market was far more subdued. After a brief fall in morning trading, the price of a barrel of Brent crude, the global benchmark, recovered to $61.22. This figure remains slightly below Friday's close of $61.35 but above the levels seen in late December.
This muted response comes despite President Trump's pledge that American oil companies would "fix" Venezuela's infrastructure and sell oil in "much larger doses." Analysts suggest a significant boost to global supply is unlikely in the short to medium term. Venezuelan exports had already collapsed in December after the US imposed an "oil quarantine," and this restriction, designed to exert leverage, remains in place.
Winners in the Financial Markets
The rising metal prices proved to be a boon for related sectors on the London Stock Exchange. Mining and weapons companies were among the biggest climbers on the UK's flagship FTSE 100 index. A similar pattern emerged in the United States, where shares in oil giants Chevron and Exxon Mobil rose by about 6% and 4% respectively, likely anticipating future involvement in Venezuela.
This event continues a trend observed throughout 2025, where stock market volatility driven by US tariffs and geopolitical uncertainty has repeatedly pushed investors towards safe-haven assets, propelling metals to record highs.
The focus now shifts to the longer-term implications for global oil supply and whether the promised investment in Venezuela's ageing oil infrastructure can materialise to significantly alter output levels.
