US attacks Venezuela: In a significant development, the US is conducting military strikes against Venezuela, US media outlets CBS News and Fox News reported. The AFP also reported on the US attack on Venezuela, citing some unnamed Trump administration officials who confirmed to the US media that US forces were involved.
Following the US attacks on Venezuela, market experts anticipate a gap-up opening for crude oil, gold, and silver prices. However, they stated that Venezuela’s economy is not large enough, and therefore, this geopolitical tension is unlikely to have a significant impact on the Indian stock market, and it is expected to remain stable. However, the bull’s conviction is expected to receive some hits, and there may not be strong buying in the early morning session, which was anticipated after the intense Friday session.
Impact on gold, silver, crude oil, other commodities
Expecting a gap-up opening for bullions, base metals, crude and other energy commodities, Anuj Gupta, Director at Ya Wealth, said, “US attack on Venezuela is expected to trigger geopolitical tension in the region, which is expected to fuel the uncertainty. Hence, I am expecting a gap-up opening for gold, silver, copper, crude oil, gasoline, etc.”
“COEMX gold price has closed at $4,345.50 per ounce levels, and the precious bullion may touch $4,380 per ounce, whereas COMEX silver rates may touch $75 and $78 per ounce, when the trading resumes on Monday next week. Similarly, Brent Crude oil price is expected to touch $62 and $65 per barrel,” said Anuj Gupta of Ya Wealth, adding, “On MCX, gold prices may touch ₹1,40,000 per 10 gm, whereas silver prices may touch 2,45,000 per kg levels. Break crude oil prices are expected to touch 5,200 and 5,300 per barrel on the MCX on Monday.”
On why gold, silver, and crude oil prices would appreciate after the US attacks on Venezuela, Sandeep Pandey, Co-founder of Basav Capital, said, “The US-Venezuela crisis has jeopardized the sea route that Peru and Chad — the world’s biggest silver exporters — use for their silver export. This is expected to create. Similarly, gold prices would also rise on Monday.”
Impact on the Indian stock market
Asked about the impact of the US attacks on Venezuela, Sandeep Pandey of Basav Capital said, “The Indian equity market is expected to remain stable. However, due to the rise in crude oil prices, we may see some downside impact on the oil stocks. However, this downside will be limited, and oil stocks are expected to recover soon.”
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
