The state-owned mining company of Venezuela has inked a multi-million-dollar deal with the Trump administration to sell 1,000 kilograms of gold to US markets, Axios reported.
According to two people cited by Axios, the deal signed on Monday will sell up to 1,000 kg of gold dore bars to commodities trader Trafigura for the US market.
The deal comes weeks after US President Donald Trump ousted Venezuelan President Nicolás Maduro by capturing him in an alleged drug case, thereby destabilising the government in that country and taking de facto control of its oil reserves.
The latest deal indicates a strengthening bond between the US and Venezuela and a tightening of commercial ties between the two countries following Maduro’s capture.
What does the US-Venezuela deal say?
The deal requires Venezuelan mining company Minerven to furnish Trafigura with 650 to 1,000 kg of gold dore bars, Axios reported, citing a person familiar with the matter.
The contract calls for 98% final gold content, according to this person cited by the news outlet.
Under a separate arrangement with the US government, Trafigura will ship the gold to the US market.
The report on the commodities deal comes after a meeting on Wednesday between US Interior Secretary Doug Burgum and Venezuela’s interim President Delcy Rodriguez to discuss mining reforms and mineral extraction.
Officials from the Trump administration have not issued an official statement yet.
The US-Venezuela gold deal is the third extraction contract the Trump administration has signed since the US took control of Venezuela’s most valuable asset — oil.
Trafigura is also involved in oil deals between the US and Venezuela, totalling $1 billion.
“Delcy Rodríguez, who is the President of Venezuela, is doing a great job and working with U.S. Representatives very well. The Oil is beginning to flow, and the professionalism and dedication between both Countries is a very nice thing to see,” Donald Trump said in a Truth Social post on Wednesday.
Gold price today
Gold prices climbed on Thursday as a widening conflict involving the US, Israel, and Iran drove investors toward the safe-haven asset.
Spot gold was up 0.8% at $5,177.33 per ounce, as of 0435 GMT. U.S. gold futures for April delivery were up 1% at $5,185.50.
Gold has gained about a fifth this year, underpinned by heightened geopolitical and trade tensions as well as concerns about the Federal Reserve’s independence. The metal hit an all-time high above $5,595 an ounce in late January.
Further support came on Wednesday, with the dollar posting its biggest fall in about three weeks amid rising oil prices and equities putting pressure on the US currency. A weaker greenback supports gold, making it more affordable for most buyers. A key gauge of the dollar has fallen roughly 0.4% in the last two days, though it has still gained nearly 1% this week.
Gold prices on MCX rose by 0.6% in Thursday’s opening to ₹1,62,542 per 10 gm for 24 karat gold, while silver prices gained 1.86% to ₹2,70,501 per kg.
Key Takeaways
- The deal indicates a strengthening bond between the US and Venezuela following political upheaval.
- Gold prices are influenced by geopolitical tensions, affecting market dynamics.
- The involvement of Trafigura highlights the commercial interests at play in US-Venezuela relations.