Weekly Roundup Jan. 19-23
GREENLAND WORRY | FED PAUSE | METALS DAZZLING
By: Lorenzo Alfonso
Jan. 25, 2026
Market Snapshot
S&P500: 1.92% | Russel 2000: -.30% | Dow Jones: 1.51% | Oil (WTI): 14.44% | Gold (GLD): -4.03% | VIX: -12.70% | 10 yr Treasury Yield: 4.217%
The Economy at a Glance
Markets had a down week for the second week in a row.
With heightened political drama, markets reacted sharply. On Tuesday, U.S. indexes tumbled around 2% before staging a rebound later in the week. The move was driven by news surrounding Greenland and the ongoing tariff dispute. President Donald Trump announced plans to impose new tariffs on European nations that oppose the U.S. purchasing Greenland. On Wednesday, he softened his stance, saying the U.S. would like to build a framework for a deal and that there would be no military takeover. Stocks rallied on that news.
Economic data was updated by the Bureau of Economic Analysis, showing that the U.S. economy grew at a faster pace in last year’s third quarter than previously expected. The agency reported growth of 4.4%, slightly higher than the original 4.3% estimate.
The University of Michigan released its January Consumer Sentiment report on Friday morning. The index came in at 56.4 for January, up from 52.9 in December.
Fed Pause
Bond markets were broadly stable, with Treasury yields only modestly higher. Futures markets are pricing in a pause by the Federal Reserve at its next meeting. According to the CME probability indicator, there is a 97% chance of rates being held steady, with the first potential rate cut pushed to midyear.
Metals Dazzling
Precious metals surged again, extending the rally in both gold and silver to new record levels. Gold traded around $4,980 per ounce on Friday afternoon, while silver surpassed $100 per ounce for the first time. Just a few weeks ago, silver had broken above its previous record near $80 per ounce.
Investors are shifting assets into precious metals, which are viewed as defensive investments. Rising geopolitical tensions, including the Greenland issue and European tariff concerns, have shaken investor confidence. In addition, uncertainty surrounding Federal Reserve independence has added to market anxiety.
Central banks have also diversified away from the U.S. dollar, increasing gold purchases since the Russia-Ukraine war. These non-traditional assets are attracting more investors in today’s volatile markets.
Looking Ahead
This upcoming week, markets will focus on Jerome Powell’s press conference on Wednesday, along with several labor market reports from the U.S. Department of Labor. The Producer Price Index (PPI) is scheduled to be released on Friday.
Glossary
Treasury Yields: Think of this like the interest the government pays when it borrows money. When yields rise, borrowing gets more expensive.
Federal Reserve Pause: This means the Fed is choosing to not change interest rates at their next meeting.
CME Probability Tool: This is like a scoreboard that shows what traders think the Fed will do next, based on real money bets.
Consumer Sentiment: This measures how people feel about money and the economy. If people feel worried, they spend less.
Gross Domestic Product (GDP): This is the total value of everything the country produces. A bigger number means the economy is growing faster.
Precious Metals: Gold and silver are physical assets people buy when they want safety instead of risk.
Defensive Asset: An investment people move into when they’re nervous. It doesn’t grow fast, but it holds value.
Geopolitical Risk: Problems between countries that can hurt trade, markets, or global stability.
Central Banks: These are national banks (like the Federal Reserve) that manage money, interest rates, and reserves.
Diversification: Not putting all your money in one place. It’s like not betting everything on one card.
