2026 opens with high-stakes uncertainty
The year 2026 began with intense political upheaval. President Donald Trump threatened decisive action against Iran. The warning followed US forces capturing Venezuela’s leader. His administration launched a criminal investigation into the Federal Reserve chair. Officials also targeted core profits at banks and major investors. These moves sent shockwaves through global markets.
Stock markets remain unexpectedly calm
Investors anticipated a sharp equity selloff. That reaction never occurred. Traders largely ignored the political turmoil. US stock indexes reached record highs early in the week. Prices later dipped only slightly. Markets held firm despite mounting geopolitical tension.
Metals surge as investors seek safety
Investor concern shifted to metals. Silver jumped more than six percent on Wednesday. Prices broke above 90 dollars an ounce. Silver is up 29 percent in 2026. That follows a 141 percent surge in 2025, its strongest year since 1979.
Gold also climbed. Prices rose nearly one percent on Wednesday. Gold traded above 4,600 dollars per troy ounce. The metal gained 22 percent this year. In 2025, gold surged 65 percent, its best performance since 1979.
Industrial metals also advanced. Tin, copper, aluminum, lithium, and zinc all posted gains in 2026.
Safe-haven buying drives the rally
Gold remains a traditional refuge for investors. Buyers use it to hedge inflation and deficits. Geopolitical uncertainty strengthens its appeal. Economic concerns push investors toward tangible assets, boosting demand for metals.
Metal prices jumped after US strikes in Venezuela. They rose again after Trump escalated threats against Iran. Widespread crackdowns on protesters added to investor anxiety.
Federal Reserve concerns intensify gains
Metals climbed further amid central bank turmoil. Federal Reserve Chair Jerome Powell revealed he faces a criminal investigation. Investors feared political interference. Questions about the Fed’s independence raised broader economic concerns. Short-term rate cuts could support stocks temporarily. Long-term risks include lost credibility and renewed inflation pressures.
These worries revived the “Sell America” trade. US Treasuries and the dollar fell. Concerns about rising deficits made metals more attractive. Capital leaving other markets pushed gold and silver higher.
Fundamental demand reinforces the surge
Strong industrial demand also supported metals. China expanded exports despite rising tariffs. Its trade surplus reached record highs. That increase boosted demand for metals used in electronics and technology.
Artificial intelligence fueled additional demand. Expanding data centers required more metals. Growth in technology infrastructure continues to drive industrial metals higher.
Rising costs may impact households
Higher metals prices could affect consumers soon. These materials appear in numerous everyday goods. Oil prices remain low but are rising alongside other commodities. That trend threatens to increase living costs.
“Bottom line, we see serious industrial metal inflation,” analyst Peter Boockvar wrote. He warned the next Federal Reserve chair will face a significant policy challenge.
