A turbulent start to 2026
The year 2026 began under intense political and economic pressure. President Donald Trump threatened decisive action against Iran. The warning came after US forces captured Venezuela’s leader. His administration launched a criminal investigation into the Federal Reserve chair. Officials also targeted key profit sources at banks and institutional investors. These developments shook markets around the world.
Stocks show surprising resilience
Many 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 eased only slightly. Despite rising geopolitical and economic risks, equities remained stable.
Metals soar as investors seek safety
Investor concern shifted toward metals. Silver surged over 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 performance 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 jumped 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 favored 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 climbed again after Trump escalated threats against Iran. Widespread crackdowns on protesters added to investor anxiety.
Federal Reserve turmoil adds momentum
Metals gained additional support from 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 concern. Short-term rate cuts could support 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 concerns made metals more attractive. Capital leaving other markets pushed gold and silver higher.
Industrial demand reinforces the surge
Fundamental demand supported metals’ rise. China expanded exports despite rising tariffs. Its trade surplus reached record levels. That growth boosted demand for metals used in electronics and technology.
Artificial intelligence added further pressure. Expanding data centers required more metals. Technology infrastructure growth continues to push industrial metals higher.
Rising costs threaten 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 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 significant policy challenge.
