Geopolitical Shock: US Attack On Venezuela Sparks Concerns Over Oil, Gold, Silver Prices
The year 2026 has begun with a significant geopolitical shock, as the United States launched strikes on Venezuela, sparking concerns over the potential impact on global commodity prices. Venezuela, which holds the world’s largest proven oil reserves, is a critical player in the global energy market. As a result, experts predict a gap-up opening in prices of oil, gold, silver, and gasoline.
According to Kaynat Chainwala, senior manager – commodity research at Kotak Securities, crude oil prices are expected to rise due to possible supply disruptions from Venezuela. Additionally, safe-haven demand for gold and silver may also increase in the wake of the sudden escalation in the crisis. Gold prices and silver prices are likely to be boosted as investors seek safe-haven assets.
Impact On Domestic Market
Although the impact of the US strikes on Venezuela is expected to be limited in the domestic market, early buying may weaken, according to analysts. Anuj Gupta, director at Ya Wealth, predicts that COMEX gold may move to $4,380 per ounce, while COMEX silver may trade near $75 to $78 per ounce. Brent crude oil prices may also move toward $62 to $65 per barrel.
The change in prices will depend on whether routes for oil supply are damaged or disrupted. However, most oil production and refining operations remained unaffected, with PDVSA’s operations being normal after the strikes, as per a Reuters report. The oil production in Venezuela had peaked near 1.14 million barrels per day in 2025.
US-Venezuela Relations
US President Donald Trump announced that his Venezuelan counterpart, Nicolas Maduro, had been captured along with his wife Cilia Flores and flown out of the country after a series of coordinated strikes hit the capital Caracas. Venezuelan authorities confirmed the capture, adding that the move was a part of the US efforts to seize control over the country’s oil reserves.
The Trump administration alleged that Maduro was funneling drugs and convicts into the US and accused him of terrorism. Maduro had declared a national emergency in Venezuela when reports emerged of airstrikes being carried out against its capital Caracas and marshalled defence troops on Saturday. A US official confirmed the news to Reuters regarding the strikes.
Indian Investors And Traders
So, how will this geopolitical development impact Indian investors and traders? Indian stock market investors should keep a close eye on the developments in Venezuela, as they may have a ripple effect on the global commodity market. Oil prices in India may also be impacted, which could have a cascading effect on the economy.
In conclusion, the US attack on Venezuela has sparked concerns over the potential impact on global commodity prices. Indian investors and traders should stay informed about the developments in Venezuela and their potential impact on the Indian economy. Geopolitical risks and investing are closely linked, and it is essential to consider these risks when making investment decisions.