Gold and Defence Stocks Gain as Geopolitical Tensions Rise
Gold and defence contractors have emerged as key beneficiaries of the ongoing Venezuelan crisis, with the US military intervention intensifying geopolitical risk and investor demand for safe‑haven and security‑related assets, according to a report by DBS Bank. The United States launched military strikes in Venezuela on January 3, 2026, capturing President Nicolás Maduro and bringing him to the US to face federal charges, including narco‑terrorism conspiracy. In financial markets, attention has shifted toward assets that typically benefit during heightened uncertainty.
Safe‑Haven Metals Catch Investors’ Eye
Gold prices have climbed as investors seek protection from increased global risk; precious metals historically attract inflows during military conflicts, often posting short‑term rallies in the aftermath of major escalations. Spot gold and silver have both risen as traders hedge portfolios against geopolitical shocks. Analysts note that heightened risk sentiment and uncertainty around global trade and energy security underpin these moves.
Defence Sector Draws Capital Amid Rising Instability
Defence companies have also moved into focus, with markets pricing in accelerated military spending against a backdrop of rising instability in Eastern Europe, the Middle East, and now Latin America. Global policymakers are boosting defence budgets, and defence stocks have seen strong reactions from investors seeking exposure to this new risk environment.
Defence Sector Draws Capital Amid Rising Instability
Defence companies have also moved into focus, with markets pricing in accelerated military spending against a backdrop of rising instability in Eastern Europe, the Middle East, and now Latin America. Global policymakers are boosting defence budgets, and defence stocks have seen strong reactions from investors seeking exposure to this new risk environment.
(Syndicated From ANI & Reuters)
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