Silver broke through $100.00 a troy ounce, as did Gold breaking through $5,000.00 a troy ounce, like a knife through hot butter. Gold on Wednesday hit yet another new high of $5,414 an ounce, up a remarkable $291 at close on Wednesday reaching $5,409.40 as demand is staying very strong. Gold has had some massive moves upward this month. This year alone Gold is up over $1,100 since January 1st. Gold is just half the precious metals story, as its sister metal Silver is setting record highs also. Demand is also very strong, not only from investors but from industries heavily dependent on Silver such as electronics, solar products, electric vehicles and artificial intelligence related components, accounting for 60% of consumption. Present demand is so strong that production can not supply the present needs of both investors and industry. Silver opened the year, January 1st at $72.68, up now an astounding $40.00 this year. “Some analysts have forecasts that silver could continue to appreciate in 2026, with some projections suggesting “prices will reach between $175 and $220 per ounce by the end of the year.” Government Treasuries have lost some favor even after the government raised interest rates, with much “rotation” of funds going to safer havens, such as gold and silver. “China’s central banks have been shifting away from Dollar-based assets into gold which is beyond the reach of foreigners,” according to the world bank. “Gold’s rally is about trust,” said TD Securities strategist Daniel Ghali as he told clients. “For now, trust has bent, but hasn’t broken. If it breaks momentum it will persist for longer.”
This past week the market was overwhelmed with confusion and disarray with government indecisiveness…” sixes & sevens,” ending Friday right where it started on Monday. All three indexes were up and down all week, directionless. As the week neared closing, Mr. Trump seemed satisfied that Greenland was again a partner defensively, calming all sides. President Trump quickly rescinded wholesale 10% tariffs imposed on all European nations opposing him, as a tense situation changed to a peaceful negotiation with a sense of calm as the week closed. Yet even with the mixed news, investors and traders were patiently waiting for solid opportunities, many of which showed up this week Monday. A University of Michigan survey released Friday, “suggested consumer sentiment is improving somewhat.” According to the Wall Street Journal and Goldman Sachs, “hedge funds performance in 2025 was the best in over a decade,” as investors flocked to the favored sector.
Monday’s market saw all the indexes rise, as the week opened on a positive note. Gold and silver were the heavy performers as investors and traders continued ‘rotation trading’ of favored Dow Jones ‘bread and butter’ favorites, as the indexes were all higher. The Dow Jones, S&P 500, and Nasdaq were up 0.6%, 0.5%, 0.4% respectively, while the smaller cap Russell 2000 was off .036%, as many ‘standard bearer’ blue chip stocks were weaker. Stocks were higher again Tuesday with S&P 500 recording a new high for the year. Both the Dow Jones industrial Average and Nasdaq Composite were up 0.8% and 0.1% respectively. Many analysts have noted that they look for “strong corporate earnings this year with a possible jump of 15% in profits.” The big anticipated news Wednesday was anticlimactic as The Federal Reserve kept interest rates steady as the first meeting of the year signaled more of the same for the remainder of 2026. Two members of the Open Market Committee voted for a cut, Stephen Miran and Chris Waller. Stocks were little changed Wednesday as the indexes all finished near the flatline. The U.S. Dollar traded weak as analysts and economists cautioned a possible economic downturn, however the U.S. economy brushes aside any serious thoughts, powering ahead. The indexes all turned lower Thursday, influenced heavily by big market favorites’ disappointing earnings releases.
RUMBLINGS ON THE STREET
Freddie Parker, Co-head of prime insight analytics at Goldman Sachs, WSJ – “All the numbers point to a very optimistic story.”
Jamie Cox, managing partner for Harris Financial Group, WSJ – “The wealth effect is alive and well with consumers.”
Raheel Siddiqui, senior investment strategist at Neuberger Berman, WSJ – “We are in the biggest [international] rate cutting cycle by central banks since 1998. The bar to drag the market down through geopolitical news is just very high.”
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