US Stocks Rally in Lively Markets – Dow up 0.6%
US equity markets kicked off the new week on a strong note, with stocks pushing higher despite continued volatility across currencies and commodities. The Dow Jones led the gains, rising 0.64% to close at 49,412, while the S&P 500 added 0.50% to finish at 6,950. The Nasdaq also advanced, up 0.43% on the day to end at 23,601, as risk appetite remained resilient. In currency markets, the US dollar came under renewed selling pressure, with the DXY index sliding 0.54% to 97.07 as traders remained focused on potential coordinated intervention in USDJPY. The softer dollar was accompanied by a modest pullback in US Treasury yields, with the 2-year yield edging 0.6 basis points lower to 3.588%, while the 10-year yield slipped 1.4 basis points to 4.211% as rate markets consolidated. Oil prices eased slightly from recent highs as traders continued to assess geopolitical risks surrounding tensions between the US and Iran. Brent fell 0.27% to $65.70 a barrel, while WTI crude declined 0.44% to $60.80. The standout moves once again came from precious metals. Gold powered through the key psychological $5,000 level, surging to trade above $5,110 during the session before settling a more modest 0.42% higher at $5,008.70, while silver remained extremely well supported, extending its recent rally to trade as high as $117.
Precious Metals Remain Bid at High Levels
Both Gold and Silver broke through key psychological levels in the last few sessions, and although pricing has been very volatile, they both look strongly bid on any dips. Silver took out the key $100/oz level on Friday, and then Gold broke through the ‘magic’ $5,000/oz level in short order yesterday morning in the Asian session. Gold has now added over 15% to its value since the start of the year, while Silver has an even better story, peaking yesterday at up over 60% at $117/oz, having kicked off 2026 just under $72/oz. Both are in incredibly strong trends higher, and although we have seen some pullbacks that represent percentage moves on intraday moves, especially in the case of Silver over the last few months, we have not seen anything in the way of a strong correction. Support for both precious metals will now come in on those key psychological levels, with stronger support much lower on trendlines. However, traders that have been buying breaks of all-time highs have been making good profits in recent weeks, so expect to see more of the same in the current environment.
Traders Brace for More Volatility Ahead
Traders are preparing for more volatility in the sessions ahead today as a variety of factors continue to drive financial products to record levels on a daily basis. The macro calendar is actually relatively quiet through the day today; however, investors are expecting geopolitical concerns to continue to dominate sentiment and keep volatility high. There is little on the calendar in the Asian session today, although fresh news this morning that President Trump will increase tariffs on South Korean goods to 25% could weigh on sentiment early in the session. The London session also has little on the calendar; however, there are a couple of scheduled events in the New York day that will capture investor attention. CB Consumer Sentiment (exp 90.6) and the Richmond Manufacturing Index (exp -5) are due out earlier in the day; however, their impact is likely to be trumped (pardon the pun) later in the day when we hear from the US President as he speaks at a scheduled event in Iowa.
