An unstable start defines 2026
The year 2026 began with political shockwaves. President Donald Trump threatened decisive action against Iran. The threat followed the capture of Venezuela’s leader by US forces. His administration opened a criminal investigation into the Federal Reserve chair. Officials also targeted profits at banks and large investors. These moves injected fresh uncertainty into global markets.
Equities stay resilient against the noise
Many investors expected stocks to fall sharply. That downturn never arrived. Traders largely dismissed the political chaos. US stock indexes reached record highs early in the week. Prices later slipped only modestly. Equity markets signaled calm despite rising geopolitical tension.
Metals absorb investor fear
Anxiety surfaced in commodities instead. Investors rushed into metals. Silver surged more than six percent on Wednesday. Prices climbed above 90 dollars an ounce. Silver now shows a 29 percent gain this year. The rally followed a 141 percent surge in 2025. That marked silver’s strongest year since 1979.
Gold advanced alongside silver. Prices rose nearly one percent on Wednesday. Gold traded well above 4,600 dollars per troy ounce. The metal gained 22 percent so far in 2026. In 2025, gold jumped 65 percent. That year ranked as its strongest since 1979.
Other metals joined the climb. Tin, copper, aluminum, lithium, and zinc all posted gains this year.
Safe-haven demand accelerates
Gold remains a classic refuge during instability. Investors buy it to hedge inflation and deficits. Geopolitical conflict strengthens that appeal. Economic anxiety pushes investors toward tangible assets. Precious metals benefit directly from that behavior.
Metal prices jumped after US military strikes in Venezuela. Prices rose again after Trump escalated threats toward Iran. Widespread crackdowns on protesters deepened investor concern.
Central bank pressure fuels momentum
Metals gained further support from turmoil at the Federal Reserve. Chair Jerome Powell confirmed a criminal investigation against him. The disclosure raised fears of political interference. Investors questioned the future independence of the central bank. Short-term rate cuts could lift stocks briefly. Long-term risks include damaged credibility and renewed inflation.
Those fears revived the “Sell America” trade. Investors sold US Treasuries and the dollar. Worries over large deficits reinforced debasement concerns. As capital flowed out, gold and silver looked increasingly attractive.
Fundamental demand tightens supply
Metals benefit from strong demand fundamentals. China expanded exports despite rising tariffs. The country found new overseas markets. Its trade surplus reached a record high. That growth boosted demand for metals used in electronics.
Artificial intelligence added another tailwind. Rapid AI expansion increased metal demand in data centers. These facilities support the growing global technology sector.
Rising prices threaten households
Higher metals prices could soon hit consumers. These materials appear in countless everyday products. Oil prices remain relatively low but have started rising with commodities. That trend threatens to intensify living cost pressures.
“Bottom line, we see serious industrial metal inflation,” analyst Peter Boockvar wrote to clients. He warned the next Federal Reserve chair will face a difficult policy challenge.
