MCX gold, silver surge; Crude oil futures trade on muted note amid US-Venezuela conflict

Precious metal futures, including gold and silver, were trading in the green on the Multi-Commodity Exchange (MCX) on Monday, January 5, amid geopolitical tensions between the US and Venezuela, along with expectations surrounding the US macroeconomic data that is set to be released this week.

Gold futures for February delivery surged as much as ₹2,439 or 1.8% to an intra-day high of ₹1,38,200 per 10 grams. At around 3:10 pm, the contract was trading 1.50% higher at ₹1,37,790 per 10 grams. The yellow metal had retreated in the past week, declining by ₹4,112, or 2.94%, after hitting record highs in late December.

Similarly, silver futures for the March expiry advanced as much as ₹13,584 or 5.75% to the session’s peak of ₹2,49,900 per kilogram. At the time of writing, the contract stood at ₹2,44,069 per kilogram, up by ₹7,753 or 3.28%. It had slumped by ₹3,471, or 1.45%, in the past week.

In the international market, yellow metal futures on Comex (Jan expiry), were trading 2.24% higher at $4,410.9 per ounce, while white metal was at $75.29 per troy ounce, up by 6.71%.

During the weekend, the tensions between the US and Venezuela escalated, as the former attacked the latter and captured its President Nicolás Maduro, with Donald Trump vowing to "run the country" until there is a "proper" transition of power. This had investors running towards the safe-haven metal.

Meanwhile, investors are awaiting the release of key US economic data, including ISM Manufacturing, December ADP employment numbers, and the unemployment rate, along with comments from a slew of Federal Reserve officials that could provide cues on the central bank's monetary policy outlook.

Crude oil futures

However, crude oil futures for January delivery were trading flat at ₹5,185 per kilogram (up by 0.58%) in a volatile session on the MCX. This comes after the US captured the Venezuelan President Nicolás Maduro, amid a surprise attack on the country.

Globally, West Texas Intermediate (WTI) crude oil futures for February delivery were trading with marginal gains at $57.349 (+0.08%), while Brent Crude for March contract was trading 0.15% higher at $60.84 per barrel in New York.

Venezuela holds about 18% of the world's oil reserves, more than Saudi Arabia (around 16%), Russia (about 5-6%), or the United States (around 4%).