Money Peak 24-Hour Report

Good morning, Money Peak readers!

The DAX continues to move in a sideways phase with a modest gain of 0.18%, while precious metals are experiencing a remarkable upswing – silver surged by over 5% and gold reached a new all-time high. Markets are returning to fundamental drivers following geopolitical unrest, while Donald Trump's new tariff threats against Canada and Europe are causing concern.

⚡ Money Peak 24h Snapshot

• DAX stable with slight gain of 0.18%, while Dow Jones declined by 0.58%
• Precious metals booming: Gold (+1.35%) and silver (+5.15%) at record levels
• Trump threatens new tariffs: 100% on Canadian goods, 200% on French wine
• SAP leads DAX gainers with +4.26%, adidas biggest loser (-5.71%)
• US Dollar continues to lose strength – EUR/USD rises by 0.62%

💹 Current Market Drivers in Focus

Fed Decision Approaching – No Rate Cut Expected

The upcoming FOMC meeting of the US Federal Reserve is in market focus, with no rate change currently expected. The Fed remains internally divided, which is reflected in cautious market reactions [1]. Simultaneously, the US dollar is losing significant value, attributed to geopolitical uncertainties and US policy developments [2].

Trump's Tariff Threats Unsettle Markets

Donald Trump is creating market anxiety with new threats: He announced potential 100% tariffs against Canada if the country enters a trade agreement with China [3]. Additionally, he threatens up to 200% tariffs on French wine, which could have far-reaching consequences for European exporters [4].

Precious Metals on Record Chase

Gold and silver are recording new highs, with silver particularly standing out with a daily gain of over 5%. Platinum (+6.38%) and palladium (+5.18%) are also posting strong gains. This development is supported by geopolitical uncertainties and the weaker dollar [5].

Banking and Technology Sectors in Focus

US banks are benefiting from increasing margins and good credit quality, while their earnings are rising [6]. In the technology sector, AI investments are becoming more selective, with analysts seeing opportunities beyond the "Magnificent Seven," particularly in software and semiconductor sectors [7].

📊 Market Data Overview

Major Indices

Top and Bottom Performers in the DAX

Top Performers:

Bottom Performers:

Commodity Prices

Currencies and Bonds

🔍 Our Focus Topic: Precious Metal Boom – Gold and Silver at Record Highs

The precious metals market is currently experiencing a remarkable upswing. Gold reached a new 52-week high of $4,991.40, while silver also marked new highs with an increase of 5.15% to $101.33. Even more impressive are the gains in platinum (+6.38%) and palladium (+5.18%).

This development stands in stark contrast to the cryptocurrency market: Bitcoin is significantly lagging behind gold and silver, despite often being seen as a digital alternative to precious metals [8]. Experts attribute the boom in precious metals to several factors:

1. Geopolitical uncertainties: Increasing trade tensions and Trump's tariff threats are driving investors to safe havens.
2. Weaker US dollar: The declining dollar makes precious metals more attractive to international buyers.
3. Inflation concerns: Despite declining inflation, precious metals remain in demand as long-term stores of value.

"The current precious metal rally shows that traditional hedges still have their place in uncertain times," explains a market analyst. "Particularly noteworthy is the strength of silver, which benefits both from its function as a precious metal and from industrial demand."

💡 Money Peak Assessment: What the Last 24 Hours Mean for You as an Investor

No Immediate Action Required, But Important Developments to Monitor

Markets are showing more stability following recent geopolitical volatility. The DAX is moving in a sideways phase, while more pronounced movements are evident in commodities and currencies. For investors, this presents several points to observe:

1. Diversification remains key: Market stability and the expected expansion of earnings expectations beyond the "Magnificent Seven" support broad diversification, particularly in the US [9].

2. Keep an eye on precious metals: The strong performance of gold, silver, and other precious metals could continue. Adding these to portfolios can be sensible as inflation and crisis protection.

3. Consider currency effects: The weaker US dollar can reduce returns on US investments for euro-based investors. Currency hedging might be worth considering.

4. Monitor sector rotation: US banks are benefiting from rising margins, while a more selective approach appears prudent in the technology sector.

5. Keep trade disputes on the radar: The tariff threats could particularly affect European exporters. Keep an eye on companies with high North American exposure.

Markets are focusing again on fundamental factors after a period of increased volatility [10]. The recession risk for the US and globally continues to be assessed as low, suggesting a fundamentally positive market development.

References:

[1] No Cut in January or 2026? Interest Rate Roundtable Ahead of FOMC Meeting. youtube.com

[2] Above The Noise: Look Beyond Distracting Headlines. seekingalpha.com

[3] Trump threatens to impose 100% tariff if Canada makes deal with China. cnbc.com

[4] Why European Wine Could Get Pricier Under New US Tariffs. youtube.com

[5] What's the Best Way to Buy Gold in 2026? marketbeat.com

[6] Bank Margins, Earnings Set To Expand, Possibly Defy Credit Concerns. seekingalpha.com

[7] These 5 tech stocks could be big winners this earnings season. marketwatch.com

[8] Crypto Corner: BTC Underperforms Silver & Gold, BTGO IPO's Wall Street Significance. youtube.com

[9] 2026 Year-Ahead Outlook: Macro, Equities, Funds, RMBS, CMBS And CLO Insights. seekingalpha.com

[10] Volatility Fades As Markets Refocus On Fundamentals. seekingalpha.com