The Business Times Podcasts S2E436: Safe-haven flows lift gold and other metals’ prices
Jan 5, 2026
Global markets are reacting sharply as gold and other metals soar due to safe-haven flows amidst geopolitical tensions. The capture of Venezuela's president adds complexity, yet investors maintain calm as Asian stocks make gains. Uncertainty around U.S. policies affects market sentiment while defense stocks get a boost from anticipated spending increases. Silver prices rise amid supply constraints, while Japan's and Taiwan's markets reach record highs, signaling a strong start for 2026.
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Calm Markets Mask Heightened Geopolitical Risk
- Markets largely shrugged off the U.S. capture of Venezuela's leader because Venezuela's oil output is small relative to global supply.
- Analysts caution geopolitical risks may be underestimated as U.S. threats could change regional dynamics.
Stocks Rally While Defense Stands To Gain
- U.S. and global stocks started 2026 strongly after big gains in 2025 despite tariff wars and geopolitical tensions.
- The immediate market effect will likely favor defense stocks as countries raise military spending.
Policy Uncertainty Lifts Gold And Weakens Dollar
- Heightened U.S. policy uncertainty will weigh on the dollar and boost safe-haven assets.
- Gold and other precious metals climbed as safe-haven demand rose after Maduro's capture.