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As of Monday, January 12, 2026, the financial landscape is being dominated by a dramatic escalation in political risk and a historic surge in precious metals.

Below is the comprehensive market preview for the week.

🏛️ Macro & FX: The "Powell Subpoena" Shock

The biggest story of the week broke this morning: Federal Reserve Chair Jerome Powell revealed he has been threatened with criminal indictment by the Trump administration over a DOJ investigation into Fed renovation costs.

• Fed Independence: This has immediately revived "credibility risk." When markets perceive that a central bank is being bullied by the government, the currency typically suffers.
• The US Dollar (DXY): The Dollar is softening as traders price in a higher likelihood that the Fed will be forced to cut rates to appease political pressure rather than following economic data. The DXY is testing support at 97.50; a break below this could see a slide toward 96.50.
• The Euro (EUR/USD): The Euro is gaining ground, currently stabilizing between 1.15 and 1.20, with analysts projecting a move toward 1.25 by the end of Q1 if USD weakness persists.

⚱️ Metals: A Historic Breakout

Precious metals are acting as the primary "release valve" for the market's anxiety.

• Gold: Prices have blasted through previous resistance to hit a new all-time high above $4,600 (some projections are now eyeing $5,000). The move is driven by the Fed drama and escalating unrest in Iran.
• Silver: Currently in "panic buying" territory. Silver is coiling for a massive breakout, having recently touched $80–$90 per ounce. With a fifth consecutive year of structural supply deficits, technical analysts see an immediate resistance test at the $100 psychological level.
• Industrial Metals: Copper remains strong (+28% year-on-year) due to the relentless demand from AI infrastructure and green energy grids.

📈 Equities: Record Highs vs. Political Volatility

US stocks finished last week at record highs, but the mood has shifted to caution this morning.

• Current State: The S&P 500 and Dow entered the week at fresh peaks, while the Nasdaq is within 1.2% of its historic high.
• Sector Performance: Small-caps (Russell 2000) are significantly outperforming large-caps as investors rotate into value and domestic cyclicals.
• AI Pivot: A major shift is occurring in tech. Reports that Meta is pivoting toward Alphabet’s AI chips (TPUs) to challenge Nvidia's dominance has caused a divergence: Alphabet shares jumped 7%, while Nvidia and other chipmakers faced selling pressure.

🛢️ Commodities: Energy Surplus

In contrast to the rally in metals, energy remains fundamentally weak.

• Oil (WTI): Prices are struggling to stay near $60. A massive projected oil surplus for 2026—exacerbated by non-OPEC production growth—is keeping a lid on prices.
• Natural Gas: Prices continue to face losses due to unseasonably warm weather patterns and high inventory levels.

📅 The Week's Critical Data Points

• Tuesday (US CPI): The "make or break" report. Expectation is for 2.7% YoY. Anything higher will complicate the Fed's position amid the current political firestorm.
• Wednesday (China Trade/GDP): Will show if the world's second-largest economy is successfully weathering trade tensions.
• Thursday (UK GDP): Crucial for the Pound; early data suggests the UK economy may have stalled in late 2025.
• Friday (US Bank Earnings): Reports from JPMorgan and Wells Fargo will reveal how the financial sector is handling the shifting interest rate environment.

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