Gold and Silver Climb Following U.S. Capture of Venezuelan President

 

Gold and Silver Climb Following U.S. Capture of Venezuelan President

(Bullion News Network) – The spot price of gold increased to begin the first full trading week of 2026. Gold gained more than $113 per troy ounce on the heels of a major escalation in the ongoing diplomatic conflict between the United States and Venezuela. Over the weekend, U.S. President Donald Trump announced that the United States successfully captured Venezuelan President Nicolás Maduro and his wife, Cilia Flores. The duo was taken to the United States and brought up on charges of cocaine-importation conspiracy, weapons charges, and narco-terrorism conspiracy. On Saturday and Sunday, the Trump administration claimed that the United States may take temporary control over Venezuela as the country prepares to elect a new leader. Gold prices climbed on the geopolitical news, adding more than $111/ozt to start the week of trading. Silver prices also moved higher; the spot price of silver gained more than $4 per troy ounce on the weekend’s news. The price action favored silver and drove the gold-silver ratio more than 1.5 points lower to below 58:1.

Platinum-group metals also gained on the geopolitical uncertainty. The spot price of platinum added more than $135 to its spot price per ounce on Monday, while palladium lagged behind to gain over $85/ozt. Platinum continued to expand its price advantage over palladium, with Monday’s price action expanding to more than $470 per troy ounce. 

The U.S. military operation dominated news headlines over the weekend. During an overnight raid on the morning of Jan. 3, U.S. military operatives extracted Nicolás Maduro from his compound in Caracas, Venezuela. The socialist leader had drawn the ire of the United States government. In 2025, the U.S. military began conducting strikes on boats off of the coast of Venezuela; the Trump administration contended that these boats were narco-terrorists. In December of 2025, the Trump administration announced a blockade on Venezuelan oil tankers and traders, expanding existing sanctions that began earlier in the year. Maduro responded by mobilizing the country’s military prior to his extraction by U.S. operatives on Jan. 3.

Precious metals are considered safe haven assets and often surge in demand during periods of heightened uncertainty and instability. The weekend’s military operation in Venezuela is a historic escalation, according to experts. While the Trump administration has suggested that the United States will play an administrative role in the Venezuelan government until a proper election can be held, the country’s future is unclear. “We’re going to get the oil flowing the way it should be,” President Trump said to reporters, referring to his longstanding claim that American access to Venezuelan oil is a matter of national security.

The stock market seemed to shrug off Maduro’s capture, with the Dow surging 1.23% to set a new record. The Nasdaq Composite and S&P 500 also climbed on the news. Given the Trump administration’s focus on improving the crude oil trade between the U.S. and Venezuela, traders may be bullish on how the influx of gasoline to the United States market could impact businesses’ bottom lines and the general economic outlook. Record earnings from Foxconn and Taiwan, one of the largest suppliers of servers for Nvidia, also drove a rally in AI markets to start the year.

Monday’s surge snapped a week-long streak of sideways movement in the price of gold. The precious metal moved very little from day to day last week, a contrast to the highly volatile price action in the silver market. Silver extended its gains from last Friday, when the precious metal added nearly 1% to its spot price. On Monday, the spot price of silver increased by nearly $4 per troy ounce, eclipsing last Tuesday’s peak and coming within $5 of a new all-time high. The price action on Monday favored silver, driving the gold-silver ratio approximately 1.4 points lower to just a bit above 58:1.

Later this week, traders will be able to review the December U.S. employment report and unemployment rate. Both of these reports could have significant ramifications for the U.S. economic outlook and could play a role in market expectations for a fourth consecutive rate cut from the Federal Reserve. Following a uniquely divided meeting in December, the FOMC voted to cut rates for the third and final time of 2025. It is unclear at this point whether the Federal Reserve will opt for another interest rate cut when it meets on Jan. 28, although officials are likely closely following employment and inflation data to decide whether another cut is justified. CME FedWatch projects a probability of 17.2% that the FOMC will cut rates by 25 basis points at its January meeting. This projection is up from 16.6% last week. Between this report and next Tuesday’s Consumer Price Index (CPI), the FOMC will open 2026 with fresh labor market and inflation readings.

Economic reports aside, investors this week will pay close attention to further developments in South America. The future of leadership in Venezuela is unclear, and both Maduro and his wife pleaded “not guilty” to charges of narco-terrorism on Monday. Countries near Venezuela, including Columbia, reinforced their Venezuelan borders over concerns that the extraction of Maduro will lead to an influx of refugees from the country. For the American precious metals market, upticks in uncertainty or escalations in the region could lead to greater demand for safe haven assets like gold and silver.

Gold and silver started 2026 strong, with both gold and silver logging gains on the heels of the U.S. military’s successful operation to extradite Venezuelan President Nicolás Maduro and his wife, Cilia Flores. The uptick in uncertainty drove heightened demand for safe haven assets like gold, silver, platinum, and palladium, snapping gold’s streak of sideways price movements and allowing silver to recoup its losses from last week. Key economic data reports this Friday and next Tuesday may provide more insight into how the FOMC may vote at the Federal Reserve’s January meeting, which could have an outsized impact on precious metal prices.