Gold and silver prices rose sharply on Monday (January 5) as markets responded to geopolitical tensions following reports that US forces captured Venezuelan President Nicolas Maduro and his wife. The development, highlighting potential instability in a major oil-producing nation, triggered safe-haven buying even as investors weighed expectations for US interest rates.
Traders are watching key US economic indicators, including ISM manufacturing, ADP employment data, and the unemployment rate, along with Federal Reserve commentary. Softer inflation momentum and signs of cooling in the labour market have kept real yields under pressure, providing support for non-yielding assets such as gold and silver.
Markets continue to price in expectations of monetary easing later this year.
Precious metals had faced a short-term correction after record highs in late December, driven by profit booking and thin year-end liquidity.
On the Multi Commodity Exchange (MCX), gold futures fell nearly 3% to around ₹1.35 lakh per 10 grams, while silver slid over 1% to ₹2.36 lakh per kilogram. Internationally, Comex gold dipped close to $4,330 per ounce, and silver retreated around 8% after hitting record levels.
Analysts said silver’s short-term volatility was also influenced by technical factors, including margin adjustments on futures markets, which prompted leveraged positions to be unwound.
Despite recent pullbacks, structural support for precious metals remains strong, underpinned by ongoing safe-haven demand, central-bank diversification away from the US dollar, and expectations of resilient industrial demand for silver.
Looking ahead, experts expect near-term price action to remain volatile, sensitive to incoming US macroeconomic data, Fed policy signals, and evolving geopolitical risks. While interim corrections are likely, the broader outlook for 2026 remains constructive, with gold expected to rise 10–60% and silver carrying both upside potential and short-term downside risks.