Market Summary: Oil Drops, Metals Surge
Date: 05 January 2026
Market Overview
The new trading week has commenced with clarity following a tense weekend, particularly regarding the geopolitical situation in Venezuela. Investors are exhibiting a risk-on sentiment, leading to a bullish atmosphere in equity futures. This positive momentum is not only influenced by geopolitical developments but is also supported by seasonal trends, as we are currently in the classic "Santa Rally" period, which encompasses the last five trading days of the previous year and the first two of the new year.
Commodities Reaction
Commodities are experiencing significant price adjustments in response to the weekend's news. Oil prices have come under pressure, reversing a brief spike during the Asian trading session. The capture of Nicolás Maduro suggests a potential increase in Venezuelan oil supply, which is expected to weigh on oil prices due to the anticipated rise in global supply.
Conversely, metals are witnessing a robust bullish session. Key metals are showing impressive gains: copper has risen approximately 3%, gold is up about 2%, platinum has increased roughly 4%, and silver leads the pack with gains nearing 6%. This broad-based appetite for real assets indicates a strong market interest beyond just individual metals.
Cryptocurrency and Currency Markets
In the cryptocurrency space, optimism is also evident, with Bitcoin extending its gains after breaking out of a multi-week symmetric triangle pattern. This upward movement brings the mid-November highs back into focus as a potential target for further gains.
On the currency front, the U.S. dollar is showing strength, gaining against most major currencies, while other currencies are generally trading lower. The dollar's dominance is acting as a stabilizing force in a market that is processing significant geopolitical changes, alongside strong performance in metals and weak oil prices.