Markets Navigate Tariff Threats and Diplomatic Shifts as Precious Metals Hit Record Highs
A volatile week saw stocks recover from tariff fears while gold surged past $4,900 and oil prices remained caught between geopolitics and oversupply.
Financial markets experienced a week of heightened volatility, dropping sharply on Monday amid threats of new European tariffs over a Greenland dispute. The mood shifted after the U.S. President outlined a framework for a future NATO agreement in Davos, easing both tariff and military concerns. Despite the potential for a compromise, lingering uncertainties continue to cloud the outlook for major indices.
This Week’s Movers
Gainers
Beazley (+40.49%): The British insurer rejected a second takeover offer from Switzerland’s Zurich Insurance, which had raised its bid from 1,230 GBX to 1,280 GBX per share. Beazley’s board unanimously deemed the offer insufficient.
Wise (+17.12%): The fintech firm now projects its 2026 earnings will reach the upper end of its forecast range. Following the announcement, Bank of America reiterated its “buy” rating and raised its price target to 1,125 GBX.
SanDisk (+14.56%): The storage specialist advanced as analysts lifted their price targets, citing solid results and a strong outlook. They pointed to improving fundamentals in the NAND flash memory market, forecasting that demand, driven by generative AI, will outstrip supply from 2026 onward.
Hecla Mining (+19.86%): As the largest silver producer in the United States, the company is benefiting from a rally in precious metals prices. The stock’s upward momentum is also being fueled by investor inflows into mining equities.
Losers
Abbott (-11.78%): Shares of the healthcare and medical device group fell after a disappointing quarterly report. Sales, particularly in its nutrition segment, missed expectations, and the company provided a weaker-than-anticipated outlook for the first quarter.
AeroVironment (-21.66%): The drone and defense specialist plunged after receiving a temporary stop-work order from the U.S. Department of Defense for its BADGER program. The unexpected halt has raised concerns about a potential revenue delay in 2026, though the company expects to renegotiate the contract and maintains a favorable long-term view.
Roblox (-15.08%): The online gaming platform experienced a market correction following a strong rally, driven by profit-taking. Slowing booking growth and concerns over margins and user engagement also dampened investor sentiment.
Commodities in Focus
Energy: Oil remains caught between oversupply concerns and geopolitical tensions. Brent crude traded around $65 per barrel, while WTI hovered near $60. U.S. inventory data released Thursday showed an unexpected 3.6 million barrel increase in crude stocks and a 6 million barrel rise in gasoline inventories, signaling sluggish demand. Meanwhile, natural gas prices surged in Europe and the U.S. as a severe cold wave drove up heating demand. The European benchmark (Dutch TTF) jumped approximately 10%, briefly topping €40/MWh.
Metals: Gold, silver, and platinum surged to unprecedented highs as investor confidence in U.S. assets waned and the dollar weakened. Gold hit a new record of $4,967, approaching the psychological $5,000 mark and bringing its year-to-date gain to 15%. Goldman Sachs has now revised its year-end price target to $5,400. Silver traded at $98.62 an ounce, up 38% since January 1, while platinum also reached an all-time high of $2,691 an ounce. Copper remained firm in London at $12,921, with supply constrained by a strike at the Mantoverde mine in Chile.
Agricultural Products: Grain prices rose in Chicago, supported by a weaker dollar and weather risks. Wheat for March 2026 delivery traded higher at 520 cents. In contrast, cocoa prices underwent a significant correction, hitting a two-year low this week as a combination of oversupply and weakening consumption reversed an earlier rally.
Macro and Crypto Landscape
Positive economic news helped stabilize sentiment. U.S. GDP growth for the third quarter was revised upward to +4.40%, with fourth-quarter growth projected at +5.4%. Core PCE inflation, a key metric for the Fed, eased by 0.1 points to +2.7% year-over-year.
The crypto market felt the pressure of the uncertain environment. Bitcoin fell 4.43% this week, slipping below the $90,000 level. The leading cryptocurrency has been trading in a range between $85,000 and $95,000 since November. This was reflected in spot Bitcoin ETF flows, which saw net outflows of over $1.2 billion this week after recording $1.4 billion in net inflows the week prior. The broader crypto market followed suit, with Ether (ETH) dropping 11% to under $3,000 and Solana (SOL) falling 8% to around $126.
The Week Ahead
Two central bank decisions are in focus for Thursday. While the Bank of Canada will announce its policy, all eyes will be on the U.S. Federal Reserve. Markets are pricing in a 95% probability of the FOMC holding rates steady.
The corporate earnings calendar is also packed. In Europe, key reports are due from LVMH, ASML, SAP, and Roche. The U.S. schedule is headlined by Microsoft, Meta, Tesla, Apple, Visa, and Exxon Mobil.
