Vicenzaoro Highlights, January 2026: Gold and Metals Skyrocket. Markets in Turmoil Between the Fed and Geopolitics
An investigation into the Federal Reserve and global uncertainty are pushing gold, silver, and industrial metals to record highs. The Financial Times describes an unprecedented scenario marked by inflation risks, tariffs, and a flight to safe-haven assets
Here’s a brief recap of what the Financial Times reported in its January 12 article on market reactions to this news. The inquiry concerns Powell’s testimony before Congress regarding the $2.5 billion renovation of the central bank’s headquarters. Powell denounced the move as an attempt to undermine the Fed’s independence, already under pressure from the White House to cut rates more aggressively.
Markets reacted immediately: gold surged 2.7%, surpassing $4,600 per troy ounce, while silver jumped 7.8%, breaking above $86. The dollar weakened, and Treasury yields fluctuated, reflecting fears of artificially low rates and rising inflation. “Political pressure on the Fed means a weaker dollar and higher inflation expectations,” explained Mike Riddell of Fidelity.
The rally extended to industrial metals: on January 14, gold, silver, copper, and tin simultaneously hit all-time highs. Gold reached $4,639 (+8% year-to-date), silver topped $91, copper hit $13,407 per ton, and tin soared past $52,000. “I can’t recall anything like this in the past 20 years,” said Helen Amos of BMO.
Driving this surge is a mix of geopolitical tensions, monetary uncertainty, and stockpiling in the U.S. amid tariff fears. Global instability persists: protests in Iran, the capture of Venezuelan President Nicolás Maduro, and Trump’s hints at possible military intervention are fueling demand for safe havens. “Gold is the ultimate geopolitical asset,” noted John Woods of Lombard Odier. Platinum has joined the rally too, hitting $2,478 at the end of December.
As the Financial Times concludes, markets have entered uncharted territory where monetary policy, geopolitics, and commodities are more intertwined than ever.
