2026 begins amid political chaos
The year 2026 opened with sharp political shocks. President Donald Trump threatened strong 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 profits of banks and major investors. These moves fueled uncertainty across global markets.
Stocks hold steady despite turmoil
Many expected a sharp drop in equities. That collapse never occurred. Traders largely ignored the political chaos. US stock indexes reached record highs early in the week. Prices later slipped only slightly. Equity markets showed surprising resilience amid rising tensions.
Metals market becomes the main outlet for fear
Investors moved heavily into metals. Silver surged over six percent on Wednesday. Prices broke above 90 dollars an ounce. Silver is up 29 percent so far this year. That follows a 141 percent gain 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 in 2026. In 2025, gold surged 65 percent, its best performance since 1979.
Industrial metals rose as well. 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 deficits. Geopolitical tension strengthens its appeal. Economic uncertainty pushes investors toward tangible assets, increasing metals demand.
Metal prices jumped after US strikes in Venezuela. They climbed again after Trump escalated threats against Iran. Widespread crackdowns on protesters added to market 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 increased economic concerns. 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 made metals more attractive. Capital leaving other markets pushed gold and silver higher.
Fundamental demand strengthens prices
Metals benefited from strong industrial demand. China expanded exports despite rising tariffs. Its trade surplus reached record highs. That growth increased demand for metals used in electronics and technology.
Artificial intelligence further boosted demand. Expanding data centers required more metals. Technology infrastructure growth continues to push industrial metals higher.
Rising costs may hit households
Higher metals prices could affect consumers soon. These materials appear in countless everyday products. Oil prices remain low but have started 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 difficult policy challenge.
