Gold Prices Soar: US-Venezuela Conflict Fuels Safe-Haven Demand on 5 January 2026

Gold prices witnessed a significant surge across Indian markets on January 5, 2026, as escalating geopolitical tensions between the United States and Venezuela triggered a strong flight to safety. The precious yellow metal, alongside silver, became a preferred asset for investors seeking refuge from global uncertainties, marking a sharp reversal from the steady prices observed just yesterday, January 4.

The US-Venezuela conflict, which included reports of US military action and the capture of Venezuela's President Maduro, sent shockwaves through commodity markets. This immediate reaction saw MCX gold futures surge by a remarkable ₹2,400 per 10 grams, while silver futures zoomed even higher, gaining ₹13,500 per kilogram. Globally, gold prices jumped by approximately 1.5% to 2.1% in response to the crisis, with silver futures seeing an even more pronounced rise of around 3%. This strong safe-haven demand was the primary catalyst for the day's robust rally.

In India, this global development directly translated into higher prices for both 22K and 24K gold. Major cities like Delhi, Mumbai, and Chennai all reported significant increases, impacting jewelry shoppers and investors alike. While gold's traditional role as a safe haven dominated the headlines, silver also benefited from its dual appeal, boosted by its growing industrial demand from sectors like electric vehicles and ETFs, in addition to its safe-haven properties. Interestingly, despite the significant geopolitical upheaval, crude oil futures traded on a muted note, showing a less direct immediate impact compared to the precious metals.

For Indian investors and jewelry buyers, today's sharp upward movement underscores gold's traditional role as a hedge against geopolitical instability. With the US-Venezuela situation unfolding, the outlook suggests continued volatility, potentially keeping gold's safe-haven appeal elevated. Those looking to purchase jewelry might face higher prices in the short term, while investors may see gold as an attractive option to diversify their portfolios amid ongoing global uncertainties.