Global Markets Rally as Gold, Trade and AI Rewire the 2026 Investment Landscape

Jan 14, 2026 - 14:00

The FTSE 100 has surged to yet another record, extending one of the strongest rallies in its history as investors continue to rotate into London-listed multinationals and global resource groups. UK equities have been lifted by surging commodities, a weaker pound and rising international capital flows, turning the index into one of the world’s top-performing benchmarks this year.

At the centre of the rally is a renewed boom in mining stocks, driven by a historic surge in gold prices as investors seek protection from geopolitical instability, monetary uncertainty and rising sovereign debt. Gold has climbed above $4,630 an ounce, pushing past previous records and cementing its role as the world’s ultimate safe-haven asset. As safe-haven demand has accelerated, London-listed miners with exposure to precious metals have become some of the biggest winners of 2026.

Silver has followed gold’s ascent, hitting record levels of its own. Unlike gold, however, silver is being supported not only by investor demand but also by strong industrial consumption tied to renewable energy, semiconductors and electric vehicles. This makes the metal a key beneficiary of the global data-centre and AI build-out now under way across Europe and the US.

The precious-metals surge is being reinforced by growing expectations that the Federal Reserve and global central banks will soon be forced into further interest-rate cuts. Core US inflation cooled to 2.6%, undershooting forecasts and raising hopes that the worst of the post-pandemic price surge is now over. However, households remain under pressure from elevated food and household-goods prices, keeping consumer confidence fragile and increasing pressure on policymakers to support growth.

At the same time, political pressure on monetary policy is intensifying, reviving concerns over the independence of central banks. That uncertainty has added another layer of appeal to gold and other hard assets, which are immune to political interference.

Trump’s Tariffs and the New Trade Order

While financial markets surge, the foundations of global trade are shifting rapidly. President Trump’s renewed push for tariffs was designed to weaken China’s economic influence, but the early evidence suggests it has had the opposite effect.

China’s exports rose 6.6% in December compared with a year earlier, beating forecasts and underlining the country’s ability to reroute trade flows. For 2025 as a whole, China posted a record $1.189 trillion trade surplus, reinforcing its position as the world’s dominant manufacturing power.

Beijing has moved rapidly to build new trade relationships across Southeast Asia, Africa, Latin America and Europe, insulating itself from US trade policy and strengthening its role in global supply chains.

Rare Earths and the AI Supply Chain

One of China’s most powerful strategic advantages lies in its dominance of rare-earth minerals, the 17 elements essential to modern technology. These materials are indispensable for semiconductors, electric vehicles, defence systems and the high-performance processors that power artificial intelligence.

China’s control of rare earths gives it enormous leverage over the global technology ecosystem — making full decoupling increasingly unrealistic.

Nvidia’s Return Signals a Strategic Shift

This week’s decision to lift restrictions on Nvidia’s advanced AI chip exports to China marks a major shift in US policy. Washington had previously blocked shipments over national-security concerns, but the economic importance of AI infrastructure has now forced a rethink.

The global AI investment boom has made technology supply chains too interconnected for isolationist trade policy to succeed.

What Investors Are Watching Next

Investors now await key US data on producer prices and retail sales, which will provide fresh clues about global demand. With economic data disrupted by recent government shutdowns, markets are hungry for confirmation that growth remains intact.

For now, signals from defence stocks, gold and global exporters all point to one conclusion: capital is being repositioned for a world where geopolitics, AI and resources are inseparable.

London’s market — rich in miners, banks and energy giants — is one of the biggest beneficiaries of that shift.