Markets are starting the year with heightened momentum and volatility across commodities, currencies, and equities. Silver is hovering near record highs after an extraordinary rally, keeping traders focused on sharp price swings and shifting macro drivers. In foreign exchange, EUR/JPY remains close to yearly highs as persistent yen weakness contrasts with a steadier euro, leaving the pair sensitive to policy and political headlines. Meanwhile, in equities, Applied Digital Corporation is drawing attention after explosive revenue growth reignited investor interest, even as questions around profitability and execution continue to shape its outlook.
Markets are starting the year with heightened momentum and volatility across commodities, currencies, and equities. Silver is hovering near record highs after an extraordinary rally, keeping traders focused on sharp price swings and shifting macro drivers. In foreign exchange, EUR/JPY remains close to yearly highs as persistent yen weakness contrasts with a steadier euro, leaving the pair sensitive to policy and political headlines. Meanwhile, in equities, Applied Digital Corporation is drawing attention after explosive revenue growth reignited investor interest, even as questions around profitability and execution continue to shape its outlook.
Silver Near Record Highs After Historic Rally, Volatility Takes Center Stage
As of now, silver (XAG/USD) is trading close to multi-year record highs around $84–85 per ounce, well above its typical price range over the past year. This strength follows an exceptional rally in 2025, when silver prices jumped by more than 150%, making it one of the strongest-performing commodities. After reaching all-time nominal highs toward the end of last year, the market has entered a more uneven and volatile phase in early 2026, with prices moving back and forth as traders react to key support and resistance levels. Short-term price action remains sharp, with daily swings of 6–10%, largely driven by profit-taking after the strong year-end surge and thinner liquidity typical of the holiday period.
Silver Shines Bright, but Volatility Clouds the Path Ahead
Silver's fundamentals remain broadly supportive, led by strong industrial demand from sectors such as solar energy, electric vehicles, electronics, and other renewable technologies, which keeps long-term demand elevated. At the same time, supply remains tight because much of the world's silver is produced as a byproduct of mining other metals, meaning output cannot easily increase even when prices rise. Safe-haven buying also continues to support the market, as geopolitical tensions and inflation concerns encourage investors to hold precious metals. On the other hand, the sharp rally has introduced clear downside risks, with increased volatility and profit-taking as some traders expect a correction or a period of sideways trading rather than a straight continuation higher. Market liquidity has also been thinner due to year-end positioning and higher margin requirements, which tends to exaggerate price swings. While ETF inflows and speculative interest are still supportive, ongoing inventory imbalances between key storage hubs could increase volatility and push prices more aggressively in either direction.
Rates, the Dollar, and Global Tensions Set the Tone for Silver
The broader macro and policy backdrop remains an important driver for silver prices. Expectations that interest rates may move lower in 2026 are generally supportive for silver, since falling real yields reduce the opportunity cost of holding non-yielding assets like precious metals. That said, a stronger U.S. dollar or unexpectedly strong U.S. economic data could limit upside in the near term by putting pressure on commodity prices. Geopolitical developments are also influential, as rising tensions in regions such as the Middle East and Latin America have increased safe-haven demand, lifting gold and silver together during periods of risk aversion. Looking ahead, major banks continue to warn that silver is likely to remain highly volatile, with shifts in Federal Reserve policy expectations and U.S. dollar strength playing a decisive role in shaping short-term market sentiment.
EUR/JPY Near Yearly Highs as Yen Weakness Drives the Trend
EUR/JPY is currently trading around 184–185, close to its highest levels of the past year. The pair has moved slightly higher over the last week, driven mainly by a weaker Japanese yen and improving sentiment toward the eurozone. From a technical perspective, analysts see key support near 182, while resistance is located around 185. The recent price action suggests the pair has rebounded from a support area and remains within an overall upward trend.
Weak Yen, Steady Euro Keep EUR/JPY Firm Near Highs
EUR/JPY is being influenced mainly by a weak Japanese yen and steady conditions in the euro area. The yen is trading near multi-month lows as investors remain uneasy about political uncertainty in Japan, including speculation about early elections and possible new government spending. Japanese officials, along with U.S. authorities, have publicly expressed concern about how fast the yen has fallen, which keeps talk of possible market intervention in the background, even if no action has been taken yet. On the policy side, the European Central Bank has kept interest rates stable and struck a cautious tone, helping the euro hold its ground. In contrast, the Bank of Japan has been very slow to move away from its ultra-loose stance, even after a small rate hike in late 2025, meaning Japanese interest rates remain far lower than those in Europe. This gap continues to favor the euro over the yen. Adding to this, slightly better investor confidence in the eurozone at the start of January has improved risk appetite, which tends to benefit currency pairs like EUR/JPY when markets are in a more positive mood.
Yen Risks Loom, but EUR/JPY Upside Still Holds
The main risk for EUR/JPY is the possibility that Japanese authorities step in to support the yen, as strong or coordinated intervention talk could quickly reverse yen weakness and push the pair lower. Another key risk comes from central banks: any unexpected policy shift from the European Central Bank or the Bank of Japan could change interest rate expectations and reduce the appeal of holding euros against the yen. Looking ahead, the short-term outlook for EUR/JPY remains neutral to mildly bullish as long as the yen stays weak and the pair holds above the important 182 support area. However, traders should watch Japanese political headlines and central bank comments closely, as these could trigger sharp and sudden moves in either direction.
Applied Digital: Explosive Growth, Market Optimism, and the Road to Profitability
Applied Digital Corporation is a U.S.-based technology company focused on building and operating next-generation digital infrastructure. Through its high-performance computing and data-center platforms, the company provides scalable hosting solutions for large enterprises and hyperscale customers with demanding power and computing needs. Applied Digital Corporation has positioned itself at the intersection of data centers, cloud services, and advanced computing, aiming to support fast-growing workloads such as artificial intelligence and data-intensive applications while expanding its footprint across key North American markets.
Explosive Revenue Growth, Losses Narrow as Profitability Improves
Applied Digital reported a strong second quarter for fiscal 2026, with revenue climbing to $126.6 million, up about 250% from the same period last year, showing that the company's business is expanding rapidly. Even with this sharp growth, the company still posted a net loss of $0.11 per share, or roughly $31.2 million, as it continues to spend heavily to grow its operations. The overall picture was more encouraging when looking at adjusted results, where Applied Digital essentially broke even, compared with a loss a year ago. Profitability at the operating level also improved significantly, with adjusted EBITDA rising to $20.2 million from $6.1 million in the prior year's quarter. Taken together, the results show that the company beat revenue expectations by a wide margin and is making steady progress toward improved profitability.
Strong Sales Spark Rally, but Profit Questions Remain
Following the earnings release, Applied Digital's shares rose in pre-market and after-hours trading, as investors reacted positively to the strong revenue growth and signs of solid demand for the company's services. The sharp sales increase helped boost confidence in the company's growth strategy. However, analyst and media commentary was more mixed, noting that while revenue clearly exceeded expectations, Applied Digital is still facing profitability challenges, which could influence how the stock performs going forward.
Big Leases and a Spin-Off Set the Next Growth Phase
Looking ahead, Applied Digital is strengthening its long-term growth outlook by signing large, multi-year lease agreements with hyperscale customers, covering as much as 600 megawatts of capacity. These deals provide better visibility and stability for future revenues. At the same time, the company plans to spin off its Cloud business into a separate entity called ChronoScale, allowing management to sharpen its focus on expanding its core data-center platform and supporting long-term growth.