Gold and defence stocks key beneficiaries as Venezuela crisis heightens geopolitical tensions: DBS report

Mumbai (Maharashtra) [India], January 9 : Gold and defence contractors have emerged as key beneficiaries of the Venezuelan crisis, as the US military intervention fuels a broader rise in geopolitical tensions and investor demand for safe-haven and security-related assets, according to a report by DBS Bank.

"Beneficiaries from the new era of US intervention and heightened geopolitical tensions include safe haven gold and defence contractors," the DBS report read.

The United States launched military strikes on Venezuela on January 3, 2026, capturing President Nicolas Maduro in Caracas and bringing him to the US to face federal charges, including narco-terrorism conspiracy.

Following the operation, Maduro's former deputy, Delcy Rodriguez, assumed leadership in Venezuela, while Washington announced that senior US officials would oversee an interim governance period until a political transition is arranged.

In financial markets, the attention has shifted to the assets that tend to benefit during periods of heightened geopolitical uncertainty.

Gold prices have risen as investors seek protection from increased global risk.

The precious metal has historically attracted safe-haven flows during military conflicts, with past episodes showing short-term price rallies averaging around 4.5 per cent in the days following major escalations.

Early trading after the Venezuela operation has followed a similar pattern, reinforcing gold's role as a hedge against geopolitical shocks.

Defence companies have also moved into focus as governments accelerate military spending in response to rising global instability.

The US action in Venezuela adds to ongoing conflicts in Eastern Europe and the Middle East, intensifying a global push toward defence self-reliance. NATO members have committed to significantly increasing defence spending over the coming decade, while the European Union has launched a large-scale rearmament programme.

By contrast, the crisis has had limited immediate impact on oil markets, despite Venezuela holding the world's largest proven oil reserves on paper.

Years of underinvestment and sanctions have reduced the country's oil output to a fraction of historical levels, limiting its ability to influence global supply. Analysts expect oil prices to remain largely rangebound in the near term, though increased volatility and temporary risk premiums are possible.

"Will the conflict in Venezuela move the needle when it comes to oil prices? Years of mismanagement, underinvestment, and sanctions have reduced Venezuela's output to a fraction of historical levels, and it is no longer a significant player in global oil supplies. In the short term, we do not think there will be a direct material impact on global crude supply amid current oversupply trends...," the report read.

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