Venezuela to supply up to 1,000 kg of gold to US; sources say deal more beneficial for Caracas

Venezuela’s state-owned mining company has signed a multimillion-dollar agreement to sell up to 1,000 kilograms of gold destined for US markets.The agreement requires state-owned company Minerven to supply between 650 and 1,000 kilograms of gold dore bars to commodities trader Trafigura, reported Axios, citing sources.The contract calls for 98% final gold content. Trafigura will transport the gold to US refineries under a separate arrangement with the US government. Today, a kilogram of pure gold costs about $166,000. The price varies depending on the market, but gold prices have been rising amid global financial uncertainty.The deal highlights tightening commercial ties between Venezuela and the United States after President Donald Trump ousted that nation’s indicted socialist dictator and exerted de facto control over its oil-rich petroleum company.US interior secretary Doug Burgum, who arrived in Venezuela on Wednesday to discuss oil and mineral opportunities, helped shepherd the gold contract.The agreement is the third extraction deal made under the Trump administration’s supervision as the United States has taken control of Venezuela’s most crucial and abundant resource, oil. Trafigura is also involved in oil contracts in Venezuela worth more than $1 billion."The oil is beginning to flow, and the professionalism and dedication between both countries is a very nice thing to see!" Trump posted Wednesday on Truth Social, also praising Venezuela's acting president, Delcy Rodriguez. Rodriguez on Wednesday announced a plan to reform the country’s mining laws after she met with Burgum.Oil prices have also been rising since the US and Israel attacked Iran, one of the world’s largest oil producers.The US ouster of Nicolas Maduro on January 3 and its subsequent control of Venezuela’s resources has drawn criticism from congressional Democrats and liberals, who accuse Trump's administration of imperialism and corruption.But one of the sources familiar with the gold and oil deals said they benefit Venezuela more now because the country has access to U.S. markets and a stable financial system."There was so much corruption before in Venezuela involving black-market smugglers who skimmed money off the top," the source said, as quoted by Axios."Now the money for Venezuela's resources will go to Venezuela's government and people. And instead of the gold going overseas to Turkey or Iran, that resource is coming to the US."