Gold and Silver Strengthen, Shaping Market Sentiment in 2026

As we enter the early days of January 2026, the global financial markets are witnessing a strong rally in gold and silver prices, occurring alongside a week marked by significant macroeconomic events. The focus of investors currently is on upcoming speeches by the U.S. Federal Reserve (Fed) and the important U.S. Consumer Price Index (CPI) report. These events are expected to cause significant volatility in risk sentiment, USD liquidity, and the performance of digital assets, especially Bitcoin. Gold Breaks New Highs, Silver Breaks Through Amid Global Uncertainty Against the backdrop of escalating geopolitical tensions and the continued impact of Fed’s monetary policy on global capital flows, gold and silver have become focal points attracting safe-haven investments. Gold prices surged to $4,427 per ounce, while silver also saw an impressive increase to $74 per ounce. This development reflects the growing demand among investors to stockpile safe assets amid economic and political instability. Senior Fed officials such as John Williams, Thomas Barkin, Raphael Bostic, and Neel Kashkari are expected to deliver important speeches soon. The content will focus on inflation outlook, interest rate trajectory, and monetary policy direction. These statements are believed to continue exerting strong influence on the global financial markets, especially on interest-sensitive assets like gold, stocks, and cryptocurrencies. According to HSBC, gold will likely maintain wide fluctuation ranges throughout 2026 due to demand from central banks, concerns over a weakening USD, and inflows from ETF funds. Nicolas Frappart, HSBC’s metals analyst, stated that gold prices in 2026 could fluctuate between $3,950 and $5,050 per ounce, ending the year around $4,450 per ounce. Bitcoin and Ethereum React to Macro Signals Not only precious metals, but digital assets are also directly affected by the current macroeconomic environment. Bitcoin—the world’s largest cryptocurrency—is currently trading around $90,632, with a market capitalization of approximately $1.81 trillion, accounting for 58.49% of the total cryptocurrency market cap. In the past 24 hours, Bitcoin’s trading volume reached nearly $29.83 billion, down over 21% from the previous period, while its price increased slightly by 0.35%. However, over the 90-day timeframe, Bitcoin has still declined about 19.16%, indicating ongoing adjustment pressures. History shows that during periods of geopolitical tension combined with expectations of policy changes from the Fed, gold and silver often rally strongly due to their safe-haven roles. At the same time, Bitcoin tends to experience significant volatility as investors seek alternative stores of value. Market Outlook for 2026 The sharp rise in gold and silver prices at the start of 2026 is helping to reshape market sentiment. Capital is trending back into defensive assets amid persistent inflation risks and unclear monetary policies. Meanwhile, Bitcoin and Ethereum continue to serve as assets reflecting investors’ long-term expectations for the decentralized financial system. If the Fed signals a more dovish stance on interest rates, the USD weakens, and global liquidity loosens, the market could witness a new growth cycle for both gold and cryptocurrencies. Conversely, if inflation remains persistent and monetary tightening continues, high volatility will remain a key theme throughout the year. Overall, 2026 opens with many opportunities but also numerous challenges, requiring investors to closely monitor macro signals to develop appropriate strategies for their portfolios.