Gold Skyrockets As US Venezuela Operation Triggers Safe-Haven Demand

WASHINGTON, Jan 6 (Bernama-dpa-AFX) - Gold prices catapulted steeply on Monday as investors rushed to safe-haven investments following the swift US military offensive in Venezuela on Saturday that resulted in the capture of the country's president and his wife, German Press Agency (dpa) reported.

Front Month Comex Gold for January delivery zoomed by US$122.50 (or 2.84 per cent) to US$4,436.90 per troy ounce. Front Month Comex Silver for January delivery leapfrogged by US$5.6080 (or 7.95 per cent) to US$76.164 per troy ounce.

On January 3, US forces carried out a "large-scale strike" on Venezuela and captured its long-serving President Nicolas Maduro and his wife Cilia Flores, flying them out of the country to face criminal charges in the US. The operation, dubbed "Absolute Resolve," ended the regime of the 63-year-old dictator who had been in power since 2013. Notably, Iran, Russia and Cuba have condemned the operation.

Currently, Vice-President Delcy Rodriguez is handling the administration. President Donald Trump emphasised on Sunday that if the present leadership does not cooperate with the US efforts, he could order another strike. Trump has been accusing Maduro's regime of fostering narco-trading which penetrates into the US, causing an opioid crisis. Maduro, who had been rebutting these allegations, counter-claimed that Trump's administration wants to usurp the oil reserves in Venezuela and called for UN intervention. 

Of note, Venezuela holds the world's largest extra-heavy crude oil reserves. Venezuelan crude exports increased in 2025 to 900,000 barrels per day. The country also holds vast natural gas reserves.

In March 2020, US prosecutors indicted Maduro on "narco-terrorism" charges. Trump also threatened Colombia and Mexico that they may suffer the same fate if they fail to contain the illicit drug flow into the US.

Geopolitical tensions, one following the other in recent days, have spooked investors towards a "flight to safety" in the yellow metal. In 2025, gold exhibited its greatest performance since 1979 by rising above 60 per cent and reaching an all-time high in December.

--BERNAMA-dpa