STI up; gold, silver rise after US captures Venezuelan leader
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The benchmark index was up 0.55 per cent at 4,683 points at around 10am.
PHOTO: BT FILE
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SINGAPORE – The Straits Times Index (STI) rose when markets reopened in Asia on Jan 5, and was trading up 0.6 per cent at around 4,684 points at noon.
This followed the US’ capture and extraction of Venezuelan President Nicolas Maduro
US President Donald Trump later said his country would take control
Regional markets traded up too, with key indexes across Kuala Lumpur, Tokyo, Seoul and Shanghai opening higher.
Oil prices fell, as increased volumes of Venezuelan oil entering the market would add to oversupply concerns and put further pressure on prices, which have already fallen in recent months.
Offshore oil and gas stocks on the Singapore Exchange were mixed. Seatrium was up 1.38 per cent at $2.20 at noon, while ASL Marine rose 1.7 per cent to 30 cents and Rex International increased 1.4 per cent to 14 cents.
In contrast, Nam Cheong fell 3 per cent to 96 cents, while Beng Kuang Marine was down 3.1 per cent at 31 cents.
Gold and silver rose, with investors seeking the safety of precious metals amid heightened geopolitical risk following Mr Maduro’s capture.
Spot gold climbed as much as 1.8 per cent on Jan 5 compared with the day before, advancing above US$4,395 an ounce at around 10 am Singapore time. Silver was trading above US$75 per ounce, up more than 5 per cent.
President Donald Trump said the US plans to “run” Venezuela after ousting Mr Maduro, leaving uncertainty over the future governance of the South American country. Secretary of State Marco Rubio said Washington would use leverage over oil to force further change.
“Markets are now forced to reprice not just Venezuela risk but US unpredictability, military reach,” Mr Nicky Shiels, head of research at precious metals refiner MKS Pamp, said in a note.
Gold is fresh from posting its best annual performance since 1979, hitting a series of records throughout 2025 with support from central bank buying and inflows to bullion-backed exchange-traded funds. Three successive rate cuts by the US Federal Reserve were also a tailwind for precious metals, which do not pay interest.
Demand for haven assets, driven by geopolitical tensions and trade frictions, has also buoyed prices, although 2025 ended with significant volatility as some investors booked profits and trading metrics pointed to overbought conditions. Gold lost 4.4 per cent last week, its biggest weekly drop since November 2024.
The tension in Venezuela “adds modestly to the background of geopolitical risks beyond trade-related issues”, said Pepperstone Group analyst Ahmad Assiri, adding that he expects greater urgency from Latin American investors to diversify into gold.
“Taking Maduro into custody set an unwelcome precedent,” he said.
Among leading banks, there is also support for further gains in gold in 2025, especially with the Fed expected to deliver additional rate reductions and Trump reshaping the US central bank’s leadership. Goldman Sachs Group said in December that its base case was for a rally to US$4,900 an ounce, with risks to the upside.
Silver rallied even more than gold in 2025, blowing through levels that until recently seemed unthinkable to all but the most enthusiastic of market watchers.
In addition to the factors that aided gold, silver has also benefited from sustained concerns that the US administration could eventually impose import tariffs on the refined metal. BLOOMBERG
Additional reporting by Kang Wan Chern
