Economics in the News – Jan. 19-25, 2026
Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o The price of gold has surged past its record high, surpassing $5,000 an ounce. Prices of gold climbed eight percent last week. Gold is on pace for its best year since 1979 – a year where inflation was high, the dollar weakened and there were tensions in the Middle East. Other precious metals are also seeing a spike in their value, with silver climbing to more than $100.
Investors are keeping a watchful eye on the geopolitical climate. Specifically, the US and European Union over President Donald Trump’s bid to buy Greenland. That has ignited fears of a trade war. In addition, investors are preparing for a growing likelihood of another US government shutdown. [The New York Times]
o Consumers are still spending, but they are seeking out ways to stretch their budgets. That means stores such as Goodwill – the world’s largest thrift store – is flourishing. Goodwill Industries announced that it surpassed a record $7 billion in revenue for 2025 from its 3,400 stores. That is a seven percent year-over-year increase. Goodwill is a nonprofit business that relies on donations and its retail stores. It offers services for previously incarcerated people to re-enter the workforce.
In a time where many have worries over expensive bills and rising rent prices, some Americans are using tools such as ‘buy now, pay later,’ to pay for discretionary goods. At Goodwill, shoppers can find low-cost items. Thrift stores are shielded away from tariff-related price increases because they don’t import goods. Gen Z and Millennials also are more frequently seeing secondhand clothes as a cheaper alternative that is more sustainable and fashionable. [The New York Times]
o A winter blast stretching from New Mexico to Maine wreaked havoc on most of the United States over the weekend. Nearly 200 million people were impacted by the storm, as ice and snow caused more than 900,000 power outages – mostly throughout the South – and nearly 12,000 flight cancellations.
Parts of the Northeast received two feet or more snow. The Nashville, Tenn., area was one of the hardest hit locations of the storm, leaving falling trees and more than 200,000 power outages with crews warning that it could take days before power is restored. Experts have warned against traveling, as frigid temperatures threaten to keep roads and sidewalks icy. [The Wall Street Journal]
o German-based grocery chain Aldi is capitalizing on its growing popularity in the United States. The fastest growing chain across the grocery sector, Aldi is known for its no-frills, and its low-priced store-brand products. According to Aldi, one in three US households shops at the store in a time where rising costs have Americans prioritizing price and value over brand loyalty. Aldi’s US sales in 2024 saw a 14 percent increase from 2023 to $54.16 billion, according to the National Retail Federation and Kantar. Aldi is capitalizing on its increased popularity with a plan for a $9 billion expansion in store openings and three new distribution centers to reach its goal of 3,200 stores in the United States by the end of 2028.
Shoppers are flocking to the German chain due to its below-market prices, Aldi’s greatest competitive advantage. Aldi’s stores have a smaller footprint than traditional grocery stores, requiring less product assortment and fewer staff members. Grocery prices have skyrocketed more than 30 percent since the COVID-19 pandemic and the year-over-year cost of food in December increased 2.4 percent. [The Washington Post]
o President Donald Trump threatened Canada with a 100 percent tariff on imported goods if Canada goes ahead with its trade deal that it negotiated with China earlier this month. Canadian Prime Minister Mark Carney announced a new trade deal with China that would lower tariffs on Chinese electric vehicles in return for lower import taxes on Canadian farm products.
Canada remains the top export destination for 36 US states, with 60 percent of US crude oil imports and 85 percent of US electricity imports coming from Canada. In addition, The United States’ northern neighbor is the largest foreign supplier of steel, aluminum, and uranium to the US. [NPR]
