According to an exclusive report by the American news website Axios on the evening of March 4th local time, Venezuela's state-owned mining company Minerven signed a large gold deal on Monday to sell up to 1,000 kilograms of gold to the US market. Two sources familiar with the transaction told Axios that the final gold content of the contract is 98%.
Deal Background and Government Promotion
Sources said that the agreement requires Minerven to provide 650 to 1,000 kilograms of gold bars to commodities trader Trafigura. Trafigura will, based on a separate arrangement with the US government, transport this gold to US refineries.
US Secretary of the Interior Doug Burgum arrived in Venezuela on Wednesday to discuss oil and mining opportunities and assisted in facilitating this gold contract. This is the third resource extraction agreement reached under the Trump administration's oversight.
Impact on Gold and Oil Markets
Currently, the price of 1 kilogram of pure gold is approximately $166,000. As global financial uncertainty increases and Middle Eastern tensions rise, gold prices are trending upwards. Meanwhile, oil prices have also continuously increased since the US and Israel took military action against Iran.
Political and Public Reaction
Trump posted on Truth Social: "Oil is starting to flow, the professionalism and dedication shown between the two countries is reassuring!" and praised Venezuela's Interim President Delcy Rodriguez. Rodriguez stated that after meeting with Burgum, she would push for reforms to the national mining laws.
The US overthrew the Maduro regime on January 3rd and took control of Venezuela's key resources, which sparked criticism from Congressional Democrats and liberals, accusing the Trump administration of imperialism and corruption. However, a source familiar with the gold and oil deals stated that these agreements are more beneficial for Venezuela as the country gains access to the US market and a stable financial system. The resource funds will directly flow to the Venezuelan government and people, rather than overseas markets.
