Gold prices surged over 2% on Jan. 5, hitting a one-week high, as geopolitical turmoil following the US capture of Venezuelan President Nicolás Maduro sparked a flight to safety.
At 09:42 GMT, spot gold was up 2.4% at US$4,433.29/oz, reaching its highest level since Dec. 29, after trading at a record US$4,549.71 on December 26. US gold futures for February delivery rose 2.6% to US$4,443.70.
“Gold is benefiting from the heightened tensions between the United States and Venezuela over the weekend. This has boosted demand for the safe-haven metal, adding to the uncertainties already facing market participants,” said Zain Vawda, Analyst, MarketPulse by OANDA.
On Jan. 4, US President Donald Trump indicated he could order another strike if Venezuela does not cooperate with efforts to open its oil sector and curb drug trafficking. He also suggested that Colombia and Mexico could face military action if they fail to reduce illicit drug flows.
“Immediate comments from the Trump administration regarding Mexico following the Venezuela operation leave market participants questioning future moves in Latin America, which should sustain gold demand in the near term,” Vawda added.
Gold surged nearly 64% in 2025, marking its largest annual gain since 1979, driven by Federal Reserve interest rate cuts, geopolitical tensions, heavy central bank purchases, and rising holdings in exchange-traded funds.
Spot silver climbed 4.9% to US$76.18/oz, after hitting a record US$83.62 on Dec. 29. The metal rose 147% last year, fueled by its designation as a critical mineral for the United States, persistent supply deficits, and growing industrial and investor demand.
Other precious metals also saw gains: spot platinum advanced 3.5% to US$2,218.50/oz, following a record US$2,478.50 last Monday, while palladium rose 2.1% to US$1,672.93.
Maduro Faces US Charges After Capture
Venezuelan President Nicolás Maduro and his wife, Cilia Flores, were captured by US special forces in Caracas on Jan. 3 during a military operation code-named Absolute Resolve. The couple was transported to New York, where they are scheduled to appear in federal court on Jan. 5, facing charges including drug trafficking, narcoterrorism, and possession of weapons.
The United States alleges Maduro led a network that facilitated cocaine shipments to the United States and supported designated “foreign terrorist organizations.” However, experts note Venezuela is not a major source of cocaine, with trafficking largely routed through Colombia, Peru, and Ecuador.
Maduro’s capture has sparked international debate over legality and sovereignty. Critics, including Russia, China, and legal experts, argue the United States violated international law and the UN Charter, as there was no armed conflict or attack on the United States.
The Trump administration has signaled that further action could occur if Venezuela does not cooperate with efforts to open its oil industry and curb drug trafficking. Interim President Delcy Rodríguez has called for dialogue and cooperation.