2026 starts with political and economic upheaval
The year 2026 began amid intense uncertainty. 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 major profit drivers at banks and institutional investors. These moves sent shockwaves through global markets.
Stock markets remain surprisingly calm
Investors expected a sharp equity selloff. That decline never occurred. Traders largely ignored the political turmoil. US stock indexes reached record highs early in the week. Prices later dipped only slightly. Despite mounting geopolitical and economic risks, equities held firm.
Metals surge as investors seek safe havens
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 gain 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, marking its best year since 1979.
Industrial metals also advanced. Tin, copper, aluminum, lithium, and zinc all posted gains in 2026.
Safe-haven demand drives the rally
Gold remains a preferred refuge for investors. Buyers use it to hedge inflation and rising deficits. Geopolitical tension strengthens its appeal. Economic uncertainty pushes investors toward tangible assets, boosting metals demand further.
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 turmoil adds momentum
Metals gained further support amid central bank uncertainty. Federal Reserve Chair Jerome Powell confirmed he faces a criminal investigation. Investors feared political interference. Questions about the Fed’s independence heightened economic concerns. Short-term rate cuts could lift stocks temporarily. Long-term risks include lost credibility and renewed inflation.
These developments revived the “Sell America” trade. US Treasuries and the dollar fell. Rising deficit worries increased metals’ attractiveness. Capital leaving other markets pushed gold and silver higher.
Industrial demand reinforces gains
Strong fundamentals supported metals. China expanded exports despite rising tariffs. Its trade surplus reached record highs. That growth boosted demand for metals used in electronics and technology.
Artificial intelligence added pressure. Expanding data centers required more metals. Technology infrastructure growth continues to drive industrial metals higher.
Rising costs may impact households
Higher metals prices could soon affect consumers. These materials appear in countless goods. Oil prices remain low but are climbing alongside other commodities. That trend threatens to raise living costs.
“Bottom line, we see serious industrial metal inflation,” analyst Peter Boockvar wrote. He warned the next Federal Reserve chair will face a major policy challenge.
