Commodities could offer the most upside in December & 2026

In this article, we cover how November may have fizzled, but silver certainly didn’t, smashing into a new all-time high and setting the tone for December. This is the moment commodities have been waiting for. With key inflation prints out this week and a Fed meeting next, the backdrop is set for the start of the next major commodity bull-market drive into 2026.

...which left the ASX200 down 3% for the month, CBA shedding 11.2%, and the Nasdaq 100 losing almost 2%, with Nvidia the biggest laggard, down 12.6%. These moves were driven by yo-yo expectations of a Fed rate cut and hotter-than-expected inflation in Australia. This week, Black Friday and Cyber Monday spending could lift broad sentiment — especially in consumer discretionary stocks — while Australia’s GDP data may provide additional support. But let’s shift to where the hottest returns in markets are right now: commodities, with silver hitting a new all-time high, now up almost 100% this year.

The thinking is that commodities — particularly silver — could pierce into new blue-sky territory. The narrative comes from the idea that markets could stabilise this week in both Australia and the US if traders like the two key US inflation prints due ahead of next week’s Fed meeting. If the data confirms the Fed can cut rates, commodities could seriously ignite.  Several factors support this:

📈 December is historically one of the most bullish months of the year for both Australian and US markets, as sentiment improves and trading activity thins. It’s also the second-best month of the year for both gold and silver. Over the last 10 years, silver has rallied 2.7% in December, while gold has risen 2.2%.

🎄 December is traditionally when institutions rotate into stocks with strong forward earnings to present portfolios as “positioned for growth” into year-end.

🌟 With a potential floor forming under markets and fear easing (the VIX dropping to 16), commodities appear to be the area offering the most upside. Here is why

📌 Because we have a softer US dollar — now hovering near three-year lows — combined with powerful supply-demand tightness. This duo provides two major drivers for returns into 2026.

📌 Friday’s data-centre power outage in the US at the CME highlighted a critical theme: the world is struggling to keep up with surging demand for energy and metals.

📌 That’s why silver rocketed to a new all-time high. Silver rose 5.8% on Friday and is now up 95% year-to-date, with gains likely to extend into 2026. Copper — the king of the green-energy transition — climbed another 2.2%, extending its YTD gain to 27%.