Gold, Silver, Copper Hit All-Time Highs as Metals Rally Accelerates

Global metals prices extended their searing rally Wednesday, with gold, silver, and copper all hitting all-time highs amid a surge in demand tied to geopolitical risks, currency debasement, and industrial demand.

The U.S. Justice Department's criminal probe into Federal Reserve Chairman Jerome Powell—seen as a political pretext to pressure the central bank into deeper interest rate cuts—has added to concerns over Fed independence and pressured the dollar. A weakening greenback typically boosts dollar-denominated commodities by making them cheaper for overseas buyers, amplifying the upward price momentum already in place.

President Donald Trump's myriad actions on foreign policy, meanwhile, including comments aimed at supporting protesters in Iran, seizing Greenland by force, and "running" Venezuela and its massive oil reserves, continue to generate demand for safe-haven assets. Investors increasingly view gold as a hedge against an unpredictable geopolitical landscape, with sovereign wealth funds and institutional money managers alike adding to positions.

Supply constraints tied to tariff worries, particularly in copper, have provided further upward pressure, while central bank gold-buying adds a massive boost to overall bullion demand. Central banks accumulated record volumes of gold in 2024, a trend that shows no signs of slowing as nations seek to diversify reserves away from the U.S. dollar.

Silver benefits from its dual role as both a precious and industrial metal. Demand tied to the buildout of artificial intelligence data centers, electric vehicle production, and solar panel manufacturing continues to tighten supply, while investors also favor the metal as a hedge against inflation risks. The gold-to-silver ratio has narrowed considerably in recent weeks, suggesting silver may be playing catch-up after lagging gold's gains earlier in the cycle.

Copper, often viewed as a barometer of global economic health, has surged on expectations of sustained infrastructure spending and the ongoing energy transition. Electrification efforts worldwide require massive quantities of the red metal, and mine supply has struggled to keep pace with demand.

The Bloomberg Commodity Total Return Index is up 5% so far this year and remains within touching distance of the all-time high it reached following Russia's invasion of Ukraine in 2022.

Overall momentum in metals markets also can't be ignored, as the so-called FOMO—or "fear of missing out"—trade has driven prices across the entire complex to a series of fresh record highs over the past six months. Technical analysts note that all three metals are trading well above key moving averages, with few overhead resistance levels to slow the advance.

Whether current prices represent sustainable valuations or speculative excess remains to be seen. For now, the confluence of macroeconomic uncertainty, industrial demand, and investor appetite continues to propel the metals complex into uncharted territory.

Wishing you as always, good trading,