Looking Good at the Start of the New Year

Looking Good at the Start of the New Year

There was a strong improvement in sentiment last week, but on thin volume. While it looks good we should be careful about getting too enthusiastic just yet, though it is looking positive for the coming months. The market does seem as if it wants to resume the enthusiasm that we saw back in October/November of last year.

Commodity prices right across the board are looking the strongest we have seen for a long time, while the geopolitical situation on many fronts is leading to stronger demand out of the USA. Gold has recovered to hit US$4,500/oz again and silver is actually outperforming gold in terms of percentage movements. Copper prices continue to rise on tight supply. Tin has strengthened, also on supply concerns. There was even renewed interest in rare earths and lithium stocks.

The first two weeks of 2026 have had us preoccupied with cyclones in the North and associated flooding, and a heat wave and bushfires in the south. Company news flow has been seasonally limited but the flow will probably pick up next week. In the meantime, the Venezuelan events have dominated the press in the last week. What are the implications for our market?