Gold, Silver Jump as Venezuela Tensions Add to Geopolitical Risk

Geopolitical Impact on Precious Metals - Gold and silver prices increased due to heightened geopolitical risks following the US capture of Venezuelan leader Nicolás Maduro, with spot gold rising as much as 2.3% to above $4,430 an ounce and silver gaining nearly 5% [1][3] - President Trump indicated that the US plans to "run" Venezuela after ousting Maduro, creating uncertainty regarding the future governance of the country and emphasizing the need for "total access" to its oil reserves [1] Market Performance and Predictions - Gold had its best annual performance since 1979, supported by central-bank buying and inflows into bullion-backed exchange-traded funds, alongside three successive rate cuts by the US Federal Reserve [4] - Leading banks forecast further gains in gold for the year, with Goldman Sachs predicting a rally to $4,900 an ounce, citing risks to the upside [5] - Silver outperformed gold last year, driven by similar factors and concerns over potential US import tariffs on refined metal [7] Economic Context - The US economy faces long-term risks from mounting federal debt, with former Treasury Secretary Janet Yellen noting that conditions are strengthening for fiscal dominance, which could lead the central bank to maintain low rates to minimize debt servicing costs [6]