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Markets Start 2026 Quietly as DAX Hovers Near Record and Gold Extends Surge

Expectations for gradual Fed easing underpin sentiment.

Overview

  • The DAX ticked up about 0.2% to roughly 24,535 in holiday-thinned trade, leaving it within 100 points of its October peak.
  • Gold rose to around $4,374 and silver to about $74 per ounce, continuing 2025’s rally after late-year CME margin hikes spurred brief selloffs.
  • Strategists outline a constructive 2026 with consensus year-end DAX targets near 26,000, pointing to anticipated rate cuts in the US and a firmer European economy.
  • Geopolitical tensions and a potential pullback in AI-driven valuations remain prominent risks, with China reasserting reunification claims over Taiwan and conducting drills.
  • European breadth improved as the Euro Stoxx 50 notched a record high, though volumes stayed muted with some major Asian markets closed.