US Strikes Venezuela, Tether Buys Gold: Gold prices are once again at the center of global market attention as fresh geopolitical turmoil, currency weakness, and corporate gold accumulation converge to create a potentially explosive setup for bullion prices when markets reopen on Monday, January 5.
After delivering their strongest annual rally since 1979 — rising nearly 70% in 2025, gold and silver are poised for a gap-up opening, according to commodity experts, following dramatic U.S. military action against Venezuela over the weekend.
Gold, Silver Likely to Gap Up After US Military Action
Market participants are bracing for heightened volatility across commodities after the United States launched a large-scale military operation in Venezuela, triggering widespread geopolitical uncertainty.
According to Anuj Gupta, Director at Ya Wealth, the escalation is likely to fuel safe-haven demand across metals and energy markets.
“The U.S. attack on Venezuela is expected to sharply increase geopolitical risk. This uncertainty typically benefits gold, silver, crude oil, copper, and other commodities. A gap-up opening on Monday looks likely,” Gupta said.
Venezuela holds the largest gold reserves in South America, estimated at 161 metric tonnes, valued at roughly $22 billion at current prices — adding further sensitivity to bullion markets.
Gold and Silver Enter 2026 After Historic Rally
Gold and silver began 2026 on a firm footing, following their best annual performance in more than four decades. Investors are also positioning ahead of a major commodity index rebalancing scheduled for next week, which could trigger additional inflows into precious metals.
- Gold prices rose as much as 1.9% on Friday before trimming gains during U.S. trading
- Silver surged up to 4%, before pulling back later in the session
Top 5 Factors That Could Fuel Gold Prices on Monday
1️⃣ US Attacks Venezuela: A Major Geopolitical Shock
The most immediate catalyst is the U.S. military operation in Venezuela, announced by President Donald Trump on his social media platform, Truth Social.
Trump claimed that:
- Venezuelan President Nicolás Maduro and his wife Cilia Flores were captured
- Both were flown out of the country and detained in the United States
- The operation involved U.S. law enforcement and special forces
The dramatic move has sparked global condemnation, raised fears of regional instability, and driven investors toward traditional safe-haven assets like gold.
2️⃣ Crude Oil Prices and Energy Market Tensions
Oil prices are balancing geopolitical risk against oversupply concerns, but Venezuela’s strategic importance keeps energy markets on edge.
- Brent crude closed just under $61 per barrel
- WTI crude finished above $57 per barrel
- Middle Eastern benchmarks weakened amid heavy selling during Asian trading hours
Any disruption to Venezuelan oil infrastructure — home to the world’s largest proven oil reserves — could further strengthen gold as a hedge against energy-driven inflation risks.
3️⃣ Gold-Silver Ratio Signals Caution for Silver
The gold-silver ratio, a closely watched valuation metric, climbed back to around 60, after dipping to 54 earlier in the week.
According to Amit Goel, Chief Global Strategist at Pace 360:
- A ratio below 80 suggests silver may be overbought
- A ratio above 80 signals potential overheating in gold
With gold at $4,345.50 per ounce and silver at $71.30 per ounce, Goel warns investors to be cautious on silver in the near term.
“Silver appears overbought at current levels. Investors should avoid fresh positions in the white metal for now,” he said.
4️⃣ Tether’s Gold Buying Strengthens Long-Term Demand
One of the most under-reported but powerful bullish forces for gold is the aggressive accumulation by Tether, the world’s largest stablecoin issuer.
According to Sugandha Sachdeva, Founder of SS-WealthStreet:
- Tether holds over 100 tonnes of physical gold
- These purchases are not linked to its gold-backed token (XAUT)
- Gold is being accumulated using corporate profits, not token issuance
This signals a broader trend of corporations treating gold like a strategic reserve asset, similar to central banks — reinforcing a strong demand floor for bullion.
5️⃣ Weak Indian Rupee Boosts Domestic Gold Prices
Gold prices in India could receive an additional boost from rupee weakness.
- The Indian rupee fell nearly 5% in 2025, its steepest annual decline since 2022
- The fall occurred despite a generally weaker U.S. dollar
- Key pressures include:
- Capital outflows
- Sluggish exports
- High hedging demand from importers
A weaker rupee makes gold imports more expensive, often pushing domestic gold prices higher, even if global prices consolidate.
Who Is Running Venezuela Now?
Following Maduro’s capture:
- Vice-President Delcy Rodríguez was sworn in as interim president
- She has demanded Maduro’s immediate release
- Despite U.S. claims, Maduro’s political allies remain in control
Trump stated the U.S. would oversee Venezuela until a “proper transition” occurs and hinted that U.S. oil companies would enter the country to rebuild infrastructure and extract resources.
Global Reaction: Widespread Condemnation
The strikes have drawn sharp criticism worldwide:
- Russia called it an act of armed aggression
- China demanded Maduro’s release
- Iran, Brazil, Colombia, and Cuba condemned the operation
- The UN Secretary-General expressed concern over violations of international law
- The EU and UK called for a lawful, peaceful transition
Bottom Line: Gold Back in the Spotlight
With:
- Escalating geopolitical conflict
- Corporate gold accumulation
- Currency volatility
- Energy market uncertainty
👉 Gold prices are positioned for renewed upside momentum as markets reopen.
For investors, Monday’s opening could set the tone for the first major precious-metals move of 2026.
Note: All information and images used in this content are sourced from Google. They are used here for informational and illustrative purposes only.
Frequently Asked Questions (FAQs)
1. How does US Strikes Venezuela impact gold prices globally?
The event US Strikes Venezuela has intensified geopolitical uncertainty, which historically drives investors toward safe-haven assets like gold. Military conflict, regime instability, and global diplomatic backlash increase risk aversion, leading to stronger demand for bullion in international markets.
2. Why are gold and silver expected to open higher after US Strikes Venezuela?
Gold and silver are likely to witness a gap-up opening because US Strikes Venezuela raises fears of regional instability, supply disruptions, and broader geopolitical escalation. Such events typically trigger immediate safe-haven buying when markets reopen after weekends.
3. What role do Venezuela’s gold reserves play after US Strikes Venezuela?
Venezuela holds the largest gold reserves in South America, estimated at around 161 metric tonnes. Following US Strikes Venezuela, concerns over control, sanctions, and asset security have heightened sensitivity in gold markets, adding to bullish sentiment.
4. How does US Strikes Venezuela influence crude oil prices and gold simultaneously?
While oil prices are balancing oversupply concerns, US Strikes Venezuela introduces risks to production and exports from a country with the world’s largest proven oil reserves. Rising energy uncertainty often strengthens gold, as investors hedge against inflation and geopolitical shocks.
5. What does the gold-silver ratio signal after US Strikes Venezuela?
After US Strikes Venezuela, the gold-silver ratio has climbed back toward 60, indicating that silver may be relatively overbought compared to gold. This suggests gold could remain the preferred safe-haven asset during heightened geopolitical stress.
6. Why is gold preferred over silver following US Strikes Venezuela?
During extreme geopolitical events like US Strikes Venezuela, investors typically favor gold over silver because gold has deeper liquidity, stronger central bank demand, and a longer history as a crisis hedge. Silver, while valuable, is more sensitive to industrial demand cycles.
7. How does Tether’s gold buying strengthen prices after US Strikes Venezuela?
Tether’s accumulation of over 100 tonnes of physical gold, independent of token issuance, reinforces structural demand. After US Strikes Venezuela, this corporate-level gold buying reduces downside risk and signals growing acceptance of gold as a strategic reserve asset beyond governments.
8. Why does US Strikes Venezuela matter for Indian gold prices?
Following US Strikes Venezuela, global gold prices may rise while the Indian rupee remains weak. A softer rupee increases import costs, pushing domestic gold prices higher even if international prices move moderately.
9. Who is governing Venezuela after US Strikes Venezuela?
After US Strikes Venezuela and the capture of President Nicolás Maduro, Vice-President Delcy Rodríguez was sworn in as interim president. Despite U.S. claims of overseeing a transition, Maduro’s political allies still retain institutional control within the country.
10. How has the global community reacted to US Strikes Venezuela?
The response to US Strikes Venezuela has been sharply divided. Russia, China, Iran, and several Latin American nations condemned the action, citing violations of international law. The UN and EU expressed concern, while a few U.S. allies signaled cautious support for political change.
11. Could US Strikes Venezuela lead to further military escalation?
Although U.S. officials suggest no immediate follow-up operations, statements following US Strikes Venezuela indicate that additional action has not been ruled out. Any escalation would likely increase volatility across gold, oil, and currency markets.
12. How does US Strikes Venezuela affect investor sentiment entering 2026?
Entering 2026, US Strikes Venezuela reinforces a broader narrative of geopolitical fragmentation, supply-chain risk, and currency instability. These conditions support continued interest in gold after its strongest annual rally since 1979.
13. Does US Strikes Venezuela change the long-term outlook for gold?
Yes. US Strikes Venezuela strengthens gold’s long-term bullish case by highlighting geopolitical risk, sovereign instability, and the growing role of gold as a reserve asset for both central banks and corporations.
14. Should investors buy gold immediately after US Strikes Venezuela?
While short-term volatility is expected after US Strikes Venezuela, many analysts believe gold remains structurally strong. Investors are advised to monitor price gaps, currency movements, and geopolitical developments before making allocation decisions.
15. Why is US Strikes Venezuela considered a critical trigger for commodity markets?
Because Venezuela is rich in oil, gold, and strategic minerals, US Strikes Venezuela affects multiple asset classes simultaneously—energy, precious metals, currencies, and emerging markets—making it a pivotal event for global commodity pricing.
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