There were plenty of double-digit percentage gains in the commodities asset class in January 2026, with precious metals leading the way on the upside until January 30, when prices collapsed. Energy commodities posted impressive gains, while cocoa futures were the only double-digit percentage loser, dropping over 30%.
Record highs and incredible gains for gold, silver, and platinum before an end-of-month correction
Silver futures posted an 11.23% gain in January, gold moved 9.31% to the upside, while platinum and palladium were up 4.28% and 3.13%, respectively. Prices were a lot higher on January 29 when gravity hit the precious metals sector, sending gold, silver, platinum, and palladium substantially lower.
The daily March COMEX silver futures chart shows that the price rose to a record high of $121.785 per ounce on January 29 before falling below $85 and settling at $78.531 on January 30. While silver was 11.23% higher in January, gravity hit the precious metal along with its siblings, gold, platinum, and palladium.
April gold reached a record high of $5,626.80 on January 29.
The daily April COMEX gold futures chart illustrates the January 30 plunge that took gold to a settlement price of $4,745.10 per ounce, over $880 below the previous days’ high. Gold posted a 9.31% gain in January but, like the other precious metals, ended the month on a bearish note.
Platinum and palladium futures rise 4.28% and 3.13%, respectively, in January. However, April NYMEX platinum futures reached a record high of $2,925.00 per ounce on January 26, before settling at $2,121.60 on January 30. Nearby March NYMEX platinum futures reached a high of $2,195.50 per ounce on January 26, before settling at $1,703.10 on January 30.
The bottom line is that after a parabolic run, gravity hit the precious metals with a sledgehammer on the final day of January 2026.
Energy futures recovered as geopolitical risks rose
Natural gas futures led the energy sector higher in January as cold weather conditions across the United States increased heating demand.
The daily chart of March NYMEX natural gas futures highlights the 39.11% gain in January.
WTI and Brent crude oil futures rose by nearly 14%. Oil products rallied, with gasoline and heating oil futures posting 11.52% and 20.42% respective gains. Seasonality caused gasoline to underperform the crude oil, sending the gasoline crack spreads lower in January. However, heating oil futures outperformed crude oil, causing higher distillate refining spreads. Chicago ethanol swaps edged marginally higher, while coal futures for delivery in Rotterdam, the Netherlands, rose nearly 10% in January.
Copper reaches new highs and corrects, and lumber rallies
COMEX copper futures moved 4.26% higher in January, settling at $5.9240 per pound.
The daily chart shows that COMEX copper futures for March delivery reached a record high of $6.5830 on January 29, before correcting below the $6 level on January 30. Metals were highly volatile at the end of the month.
Lumber futures moved 3.30% higher in January, settling at $595 per 1,000 board feet on the active month March 2026 futures contract. Lumber is in the heart of the offseason for construction, but the prospects for lower interest rates in 2026 likely kept lumber’s price steady.
Mixed results in gains and softs- Animal proteins rally
Soft commodities remain volatile, with four of the five sector members posting losses in January. FCOJ moved 4.92% higher, while cocoa futures prices led the sector on the downside with a 31.33% decline. Arabica coffee futures fell 4.44%, world sugar futures were down 4.93%, while cotton futures fell 1.71% lower in January.
After seasonal downside price corrections that ended in November, cattle and hog prices bounced higher in January. April live cattle futures posted a 2.25% gain, with the March feeder cattle futures rising 4.33%. April lean hog futures led the meat sector with an 11.81% gain for the month ending on January 30, 2026.
Grain prices were mixed, with March corn futures falling 2.73% for the month. March soybean and wheat futures posted respective 1.60% and 6.11% gains in January. Uncertainty about the 2026 crop year supported bean and wheat prices.
Cryptos and the dollar index fall- Bonds steady, while stocks edge higher
The leading cryptocurrencies, Bitcoin and Ethereum, declined by 4.22% and 9.83%, respectively, in January. The dollar index, which measures the U.S. dollar against the other leading world reserve currencies, fell 1.21% in January, while the U.S. government long bond futures edged 0.22% lower for the month. The lower dollar index and lower bonds are mixed signals for commodity prices.
The most diversified U.S. stock market index, the S&P 500 index, rose 0.66% in January.
Factors to watch in February 2026- The economic and geopolitical landscapes remain turbulent
As the commodities move into February, they are in the heart of winter, seasonality continues to favor some price weakness in meats and gasoline, and strength in natural gas. Volatility is likely to remain elevated in NYMEX U.S. natural gas futures over the coming weeks. However, as spring approaches, expect volatility in these sectors with the driving season in gasoline and the 2026 grilling season on the horizon.
Keep a close eye on those metals, as gold, silver, and copper remain in long-term bullish trends but the action on January 30 could causes extreme bouts of price volatility. The continued decline in fiat currencies’ purchasing power remains a factor supporting metals. As I wrote at the end of December, explosive gains increased the odds of corrections.
The bull market in stocks continues, but the economic and geopolitical landscapes provide more than a few roadblocks. The odds of a lower Fed Funds Rate will rise as President Trump appointed Kevin Warsh as the new Fed Chairman to replace Jerome Powell.
Expect continued volatility in the commodities asset class in February 2026 and beyond, and you will not be surprised or disappointed.
On the date of publication, Andrew Hecht did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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