Prices of major metals including gold, silver, platinum, and copper have surged to all-time highs in international commodity markets, marking an unprecedented rally. The gains reflect a massive flight to safe-haven assets driven by geopolitical tensions from U.S. President Donald Trump's hardline foreign policies, the Federal Reserve's rate-cutting stance and dollar weakness, and global supply chain instability.
On the New York Mercantile Exchange on Wednesday, gold futures for February delivery closed at $4,505.70 per ounce, up 0.8% from the previous session and breaking through the $4,500 level. According to Bloomberg, spot gold reached a record high of $4,525.77 per ounce as of 10:21 a.m. Korea time on Thursday. Gold prices have surged more than 70% this year alone, putting the metal on track for its largest annual gain since 1979.
Silver and platinum have posted even steeper gains. Spot silver hit a record high of $72.70 during intraday trading, up 150% from the start of the year. Platinum, used in automotive catalytic converters, broke through the $2,300 per ounce level for the first time since data collection began in 1987, reaching $2,377.50. Platinum has risen more than 160% this year, the highest gain among metals.
Multiple factors are driving the rally. The United States' blockade of Venezuelan oil tankers and President Trump's signals of a hardline response to the Nicolás Maduro regime have highlighted gold's appeal as a risk hedge.
Macroeconomic factors have also fueled the surge. The Federal Reserve has already cut interest rates three times, and expectations of further cuts next year have enhanced the attractiveness of precious metals, particularly gold, analysts said.
Copper, an industrial metal, also broke through the $12,000 per ton barrier for the first time as supply concerns mounted. Three-month copper futures on the London Metal Exchange surged to $12,159.50 during intraday trading. Copper has risen more than 35% this year, approaching its largest annual gain since 2009.
The copper price surge stems from soaring demand for electrical wiring driven by AI data center expansion and power grid upgrades, compounded by production disruptions from mining accidents in major producing countries. Companies stockpiling inventory in anticipation of potential U.S. tariffs are further pushing up prices, analysts said.
Experts forecast the precious metals rally will continue into next year. John Finnie, a precious metals dealer at Guardian Vault, said the current rally "is not simply speculative froth but a combination of physical demand and sensitivity to macroeconomic risks." Goldman Sachs set its gold price target at $4,900 per ounce for next year, leaving room for further gains.
