By: Economy Middle east

Gold prices surged over 1.9 percent to a one-week high of $4,411 per ounce on Monday following the U.S. capture of Venezuelan President Nicolás Maduro, as investors flocked to safe-haven assets amid escalating geopolitical risks. Silver, platinum, and palladium also jumped more than 3 percent in early trading, reflecting broad demand for precious metals. This reaction underscores gold’s role as a hedge against uncertainty, particularly in volatile regions like Latin America.

The U.S. executed “Operation Absolute Resolve” on Saturday, involving over 150 aircraft and elite Delta Force units, landing helicopters at Maduro’s Caracas residence at 2:01 AM local time. Maduro and his wife, Cilia Flores, were captured and flown to New York City’s Metropolitan Detention Center, facing charges related to drugs and weapons. Explosions targeted Venezuelan air defenses and military sites, with reports of civilian casualties, prompting Vice President Delcy Rodríguez to declare herself interim leader while insisting Maduro remains president. 

President Donald Trump, reelected in 2024, approved the mission late Friday and vowed to “run the country” until a stable transition, pledging to seize Venezuela’s vast oil reserves to fund recovery. Secretary of State Marco Rubio clarified no direct governance plans but emphasized an “oil quarantine” to enforce change. Defense Secretary Pete Hegseth described the raid as a “massive joint military and law enforcement” effort lasting under 30 minutes. 

Spot gold rose 1.68 percent to $4,405.05 per ounce, with U.S. futures up 2.00 percent at $4,416.90, hitting levels not seen in over a week. Some analysts attributed the move to “rekindled safe-haven demand” from the Venezuela crisis, compounded by expectations of two Federal Reserve rate cuts in 2026. Silver climbed nearly 3.19 percent to around $75.14 per ounce in some reports, while broader precious metals gained amid fears of regional instability.

This surge builds on gold’s 2025 highs, reversing a year-end dip as investors reassess risks from U.S. intervention in oil-rich Venezuela. Analysts noted gold and silver as top choices for shielding portfolios from “geopolitical uncertainties.” 

In the UAE, gold rates marked notable gains on Monday, with 24-carat gold rising AED8.50 to AED530.50 and 22-carat gold gaining AED8.00 to AED491.25. Additionally, 21-carat gold inched up AED7.50 to reach AED471.00, while 18-carat gold edged up AED6.50 to AED403.75.

Oil steady, stocks mixed

Crude oil prices dipped slightly or held steady, as markets weighed Trump’s oil control pledges against Venezuela’s production woes under Maduro. Brent and WTI had fallen 20 percent in 2025 due to oversupply fears, but experts like analyst León suggest instability could tighten supply and support prices if prolonged. Asian stocks opened higher, viewing the event as contained, while U.S. equity futures showed resilience. 

The operation follows U.S. military buildup in the Caribbean, including the USS Gerald R. Ford carrier group, amid prior strikes on alleged drug boats. Oil’s muted response reflects “above-ground factors” like political flux over Venezuela’s reserves. 

World leaders issued sharp rebukes, with China calling the raid a “hegemonic act” violating the UN Charter and sovereignty. France deemed it a contravention of non-use-of-force principles, while Venezuela labeled it a “barbaric kidnapping.” Allies praised accountability, but Latin American nations warned of instability; the UN will scrutinize legality Monday.