Core Viewpoint - Precious metal prices have continued to rise since 2026, reaching record highs, driven by factors such as trade tensions, ongoing central bank gold purchases, and geopolitical disturbances [1] Price Movements - On January 26, the London spot gold price briefly surpassed $5,100 per ounce, with a year-to-date increase of over 18% [1] - The London spot silver price also exceeded $110 per ounce, showing a year-to-date increase of over 50% [1] Market Expectations - The Federal Reserve is set to hold its first monetary policy meeting of 2026 on January 27-28, with widespread market expectations that it will maintain its current stance [1] - A hawkish statement from the Federal Reserve could lead to increased market volatility [1]

Key Takeaways The Federal Reserve seems likely to cut interest rates again this week, but it probably won't do so as a united front. Fed officials are split on whether the economy needs lower interest rates, a debate that starts Tuesday and will also be on display when the Federal Open Market Committee's decision comes out at 2 p.m. ET Wednesday. The more dovish FOMC officials are likely to prevail. The Fed is widely expected to cut its benchmark rate by 25 basis points to a range of 3.5% to 3.75%, amid sig ...