Oil Prices Decline After Seizure of Venezuela’s President Maduro
Gold and defence stocks gain as investors weigh geopolitical risks and shift toward safe-haven assets
- Oil prices fell as markets assessed the impact of developments in Venezuela.
- Gold and silver prices rose as investors moved to safe-haven assets.
- Defence and precious metals stocks gained in early London trading.
Oil prices fell on Monday as markets reacted to developments in Venezuela, with analysts suggesting that any potential disruption to the country’s oil exports would likely be offset by alternative global supplies.
The decline comes amid heightened attention on Venezuela’s oil sector following events over the weekend. Market analysts noted that global production capacity remains sufficient to absorb any shortfall, easing concerns over supply shocks.
In contrast, prices of precious metals rose as investors shifted funds toward so-called safe-haven assets. Gold climbed by nearly 2% to trade at $4,408 per ounce, while silver gained 3.5%.
Equity markets also reflected rising geopolitical uncertainty. Shares in defence companies advanced in early trading in London, with BAE Systems and Babcock International among the top performers on the FTSE 100.
Meanwhile, mining companies linked to precious metals also benefited from higher gold prices, with Endeavour and Fresnillo recording gains during the session.
