By Demetris Christou, Managing Director – AGD Global
As we enter 2026, global markets are transitioning into a new phase—one defined less by traditional borders on maps and more by control of energy flows, trade corridors, data infrastructure, and strategic alliances. At AGD Global, our focus is to cut through the noise and understand how these shifts translate into real-world pricing, volatility, and opportunity for precious metals and for our clients.
A World Being Redrawn by Corridors, Not Just Borders
The Middle East and Eastern Mediterranean are undergoing a quiet but profound transformation. While headlines often focus on conflict, the deeper story is about infrastructure architecture—who controls the routes that move energy, goods, capital, and data.
The emergence of large-scale corridor thinking—most notably the India–Middle East–Europe connectivity vision—signals a long-term attempt to reshape global supply chains. These corridors are not just about transport; they integrate energy pipelines, electricity interconnectors, ports, rail, and subsea data cables into a single strategic framework.
For global powers, this is about resilience and influence. For markets, it introduces new friction points, new dependencies, and new sources of geopolitical risk.
Energy as the Strategic Core
Energy remains the backbone of the global economy and the primary transmission channel for inflation and political risk.
We are closely monitoring:
- Increased involvement of US-linked energy companies in offshore exploration across the Eastern Mediterranean and adjacent seas
- Renewed focus on offshore resources in North Africa, including Libya, as governments seek to reassert relevance in global energy markets
- Israel’s evolving role as a regional energy and infrastructure node, particularly through partnerships with India and Gulf states, and its growing importance in electricity and data connectivity projects
These developments matter because energy exploration and infrastructure almost always precede political tension, especially in regions where maritime boundaries and exclusive economic zones remain contested.
The Overlooked Catalyst: SMRs and the Energy Needs of AI
One of the most critical—and still underappreciated—developments heading into 2026 is the pivotal role of Small Modular Reactors (SMRs) in supporting the next phase of artificial intelligence expansion.
AI is extraordinarily energy-intensive. Data centres, high-performance computing, cloud infrastructure, and real-time analytics require stable, continuous, and scalable baseload power—something that intermittent renewables alone struggle to provide.
SMRs are increasingly viewed as a strategic solution because they offer:
- Reliable 24/7 baseload energy
- Smaller physical and capital footprints than traditional nuclear plants
- Faster deployment timelines
- Enhanced safety and modular scalability
As AI adoption accelerates across defence, finance, logistics, healthcare, and energy management, power security becomes a national strategic issue. This is why governments and major technology players are actively evaluating nuclear—including SMRs—as part of their long-term AI and data infrastructure planning.
From a macro perspective, this links energy security, technological dominance, and geopolitical power more tightly than ever before.
US–Russia: Back Channels, Not Headlines
Another key theme shaping 2026 is the existence of back-channel communication between the US and Russia.
While there is no confirmed “grand deal,” credible reporting indicates that discussions around Ukraine, sanctions, and energy flows continue behind the scenes. For markets, the significance lies not in certainty, but in optionality:
- A partial de-escalation or negotiated pause could temporarily reduce risk premiums
- A breakdown or hardening of positions could quickly reintroduce volatility across energy, currencies, and commodities
Even the possibility of future sanctions adjustments or energy realignments is enough to move markets. History shows that uncertainty—rather than outcomes themselves—is often the most supportive environment for gold.
The Bigger Framework: US vs China
Overlaying all of this is the continued strategic concentration of the United States and its partners against China.
This competition spans:
- Trade routes and shipping lanes
- Technology, semiconductors, and AI leadership
- Data infrastructure and undersea cables
- Energy security and nuclear capability
As supply chains fragment and globalisation becomes more selective, costs rise. Insurance, freight, compliance, and financing all become more expensive. This environment tends to favour real assets and stores of value over purely financial claims.
From AGD Global’s perspective, this is not a short-term cycle—it is a structural shift that will likely define the rest of this decade.
What This Means for Precious Metals in 2026
Precious metals do not move in straight lines, but they respond consistently to certain conditions:
- Elevated geopolitical uncertainty
- Energy-driven inflation risk
- Currency confidence erosion
- Rising sovereign debt and fiscal pressure
The current global setup contains all four.
Gold and silver continue to act as strategic hedges—not only against inflation, but against policy error, geopolitical tail-risk, and sudden shifts in market confidence—especially in a world where energy, technology, and geopolitics are becoming inseparable.
Looking Ahead
2026 is shaping up to be a year where geopolitics, energy, and technology converge. Energy corridors, nuclear innovation, AI infrastructure, and great-power competition will continue to influence inflation, currencies, and investor behaviour.
AGD Global remains committed to keeping our clients informed, prepared, and strategically positioned as these forces evolve. We value the trust you place in us and look forward to navigating the year ahead together.
Warm regards,
Demetris Christou
Managing Director – AGD Global
Trusted Precious Metals Partner
Disclaimer:
This report is provided by AGD Global for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or a solicitation to buy or sell any product or security. All views and opinions are based on publicly available information believed to be accurate at the time of publication but are subject to change without notice. Investors should perform their own due diligence or consult a qualified financial advisor before making investment decisions.