Gold and silver rally as Venezuela shock triggers inflows and volatility risk

David Morrison

SENIOR MARKET ANALYST

05 Jan 2026

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Both gold and silver attracted strong inflows overnight. Gold was up more than 2% at one stage, surging above $4,400 to hit a four-day high during early European trade. Silver was up over 4% by mid-morning.

Source: TN Trader

These moves were triggered by the Trump administration’s unexpected defenestration of Venezuela’s President and his wife over the weekend. But it’s fair to say that many traders were just waiting for an excuse to buy back in at cheaper prices following the post-Christmas slump, which saw both gold and silver crater off their all-time highs. What’s next? Much depends on how sentiment shifts.

Silver dropped around 16% once it reopened after Christmas. That’s a scary move, and it may have been sufficient to drive out the weaker hands, particularly those who bought when silver was above $75 and rallying. But gold only fell 6% over the same period. Could that be sufficient to reset the market for a rally to new highs?  Possibly. But one thing seems likely, and that is that investors should prepare for more volatility.


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