A volatile start to 2026
The year 2026 began amid intense political and economic tension. President Donald Trump threatened decisive action against Iran. The warning followed US forces capturing Venezuela’s leader. His administration opened a criminal investigation into the Federal Reserve chair. Officials also targeted key profit sources at banks and institutional investors. These developments sent shockwaves through global markets.
Stocks hold steady despite turmoil
Investors expected a sharp equity selloff. That decline never happened. Traders largely ignored the political chaos. US stock indexes reached record highs early in the week. Prices later fell only slightly. Equity markets remained surprisingly resilient despite rising geopolitical and economic risks.
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 rose. Prices climbed nearly one percent on Wednesday. Gold traded above 4,600 dollars per troy ounce. The metal gained 22 percent this year. In 2025, gold jumped 65 percent, its best performance since 1979.
Industrial metals also climbed. Tin, copper, aluminum, lithium, and zinc all posted gains in 2026.
Safe-haven demand drives the rally
Gold remains a trusted refuge for investors. Buyers use it to hedge inflation and rising deficits. Geopolitical uncertainty strengthens its appeal. Economic worries push investors toward tangible assets, boosting metals demand further.
Metal prices spiked after US strikes in Venezuela. They rose again after Trump escalated threats against Iran. Widespread crackdowns on protesters added to market anxiety.
Federal Reserve turmoil adds momentum
Metals gained additional support from central bank developments. Federal Reserve Chair Jerome Powell confirmed he faces a criminal investigation. Investors feared political interference. Concerns over the Fed’s independence heightened economic uncertainty. Short-term rate cuts could lift stocks briefly. Long-term risks include lost credibility and renewed inflation.
These developments revived the “Sell America” trade. US Treasuries and the dollar fell. Rising deficit concerns increased metals’ attractiveness. Capital leaving other markets pushed gold and silver higher.
Strong industrial demand reinforces the surge
Fundamental demand underpinned metals’ rise. 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. Growth in technology infrastructure continues to push industrial metals higher.
Rising costs may hit households
Higher metals prices could soon affect consumers. These materials appear in countless 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 major policy challenge.
