On 26.01.2026, gold climbed above $5,100 per ounce while silver exceeded $110 per ounce, and many altcoins drifted downward.

Tariffs and geopolitics

Recent policy threats include a proposed 100% tariff on Canadian trade linked to China, actions targeting Maduro in Venezuela and pressure on Iran.

Separately, public statements about territorial or strategic interests have amplified uncertainty and driven demand for perceived safe assets across markets.

Federal Reserve, dollar and inflation

The Federal Reserve plans additional rate cuts in 2026, which reduces real yields and contributes to a weaker dollar and lower bond returns.

Official inflation is reported at about 3%, while price rises for housing and food suggest broader consumer costs are materially higher than headline figures indicate.

Central bank and market flows

Central banks continue to add gold to reserves, and several countries are reducing holdings of U.S. Treasury securities in favor of tangible assets.

Gold and silver ETFs have attracted tens of billions in new investment, and reported export controls by China on precious metals tightened supply expectations.

Is this a rally or a bubble?

The simultaneous surge in metals and weakening dollar is read by many market participants as a vote of no confidence in fiat stability and potential monetary accommodation.

Historically, sharp commodity rallies accompanied by heavy central-bank purchases have coincided with episodes of broader financial stress and restructuring of reserve portfolios.

Investor responses

Observed strategies range from selling cryptocurrencies to acquire physical bullion, to maintaining long-held metal positions or combining bitcoin and gold exposures.

Market participants face trade-offs between liquidity, custody costs and perceived protection against currency debasement when reallocating into commodities.

Outlook for market participants

With prices at current highs, investors and institutions are reassessing allocations amid geopolitical friction, central-bank policy changes and shifting reserve compositions.

Monitoring flows into ETFs, central-bank reserve reports and trade-policy developments will remain central to understanding ongoing price dynamics.