Bloomberg Intelligence senior commodity strategist Mike McGlone said in a Jan. 2 post on X that gold, silver, most metals and US stocks are showing signs of having climbed too far. He pointed to Bitcoin and crude oil, which pulled back in 2025 after sharp earlier advances, and said a similar price setup is now visible across several other assets.
McGlone wrote that rapid rallies often begin with real fundamental support. Still, when prices rise too quickly, higher supply and weaker demand can follow, setting the stage for a reversal. As 2026 begins, that concern is moving closer to the center of market discussion.
Precious metals led 2025 gains
Precious metals posted the strongest performance in 2025. Gold rose about 65% for the year, climbing from roughly $2,600 an ounce at the start of the year to around $4,310 by year-end. The metal set multiple record highs and logged its biggest annual gain since 1979.
The move was supported by higher geopolitical uncertainty, a Federal Reserve rate-cutting cycle, a weaker US dollar, and continued buying by central banks seeking to diversify foreign exchange reserves.
Silver outperformed even gold, gaining about 144% in 2025 and ending the year near $72 an ounce, also its best annual showing since 1979. Along with safe-haven demand, silver benefited from expanding industrial use tied to solar panels, electric vehicles and electronics.
US equities advanced, but at a slower pace
US stocks also moved higher in 2025, though not as aggressively as precious metals. The S&P 500 gained about 16% to 17% and finished the year near 6,845. The Dow Jones Industrial Average rose about 13% to around 48,063, while the Nasdaq advanced roughly 19% to 20%, led by technology and AI-related companies.
Earnings growth and expectations for lower rates supported equities through the year. Even so, McGlone’s view is that after the strong run in 2025, gold, silver, most metals and US stocks now carry a clearer risk of a pullback.