A turbulent start to the year
The year 2026 began under heavy political and economic 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 core profits at banks and major investors. These moves rattled markets worldwide.
Equities remain surprisingly stable
Investors expected a sharp stock selloff. That reaction never materialized. Traders largely ignored the political turmoil. US stock indexes reached record highs early in the week. Prices later eased only slightly. Despite rising geopolitical risks, equities showed resilience.
Metals markets surge as fear mounts
Investors shifted capital to metals. Silver jumped over six percent on Wednesday. Prices broke above 90 dollars an ounce. Silver has gained 29 percent so far 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, marking its best performance since 1979.
Industrial metals followed suit. Tin, copper, aluminum, lithium, and zinc all posted gains in 2026.
Safe-haven demand strengthens the rally
Gold remains a trusted refuge for investors. Buyers seek protection against inflation and rising deficits. Geopolitical uncertainty reinforces this appeal. Economic worries push investors toward tangible assets, driving metals demand higher.
Metal prices jumped after US strikes in Venezuela. They rose again following Trump’s threats against Iran. Crackdowns on protesters further fueled investor anxiety.
Federal Reserve turbulence adds momentum
Metals gained additional support from central bank developments. Federal Reserve Chair Jerome Powell confirmed a criminal investigation against him. Investors feared political interference. Concerns about the Fed’s independence increased broader economic uncertainty. Short-term rate cuts could support stocks temporarily. Long-term risks include damaged credibility and renewed inflation pressures.
These fears revived the “Sell America” trade. US Treasuries and the dollar fell. Deficit concerns strengthened metals’ appeal. Capital exiting other markets made gold and silver more attractive.
Strong industrial demand underpins the surge
Metals benefited from fundamental demand. China expanded exports despite rising tariffs. Its trade surplus reached record highs. That increased demand for metals used in electronics and technology.
Artificial intelligence added further pressure. Expanding data centers required more metals. Growth in technology infrastructure continues to drive industrial metals higher.
Rising prices could impact consumers
Higher metals costs may soon affect households. These materials appear in many consumer goods. Oil prices remain low but are climbing alongside other commodities. That trend threatens to raise living costs further.
“Bottom line, we see serious industrial metal inflation,” analyst Peter Boockvar wrote. He warned the next Federal Reserve chair will face a major policy dilemma.
