Metals Rally Continues: Gold and Copper Reach Records, Silver Nears 12-Year High [Video]

Gold prices soared to a record high on Monday, reaching just above $2,450 per ounce in early morning trading, breaking previous nominal highs reached in April. The rally in the metals market continued as silver prices neared 12-year highs, hovering just above $32 per ounce, its highest price since late 2012.

The surge in gold can be attributed to expectations of a Federal Reserve rate cut and strong demand from central banks and Asian buyers. Silver, on the other hand, has outperformed gold in recent weeks, gaining 35% this year compared to gold’s 18% rise.

In addition to gold and silver, copper prices also hit new highs on Monday, with analysts suspecting a short squeeze has sent prices soaring. Despite this short-term trend, experts like Michael Widmer, global head of metals research at Bank of America, anticipate strong demand fundamentals to continue over the next year. Widmer forecasts copper prices to reach an average of $12,000 per ton in 2025, a 20% upside from current levels.

Unlike gold, silver’s industrial demand hit a new high in 2023 for a third consecutive year, making its rise potentially susceptible to economic swings similar to copper prices. Bloomberg Intelligence senior commodities strategist Mike McGlone remains positive on the outlook for commodities, particularly metals, amid economic uncertainties.

As gold, silver, and copper continue to reach new highs, investors and analysts are closely monitoring the metals market for further developments and opportunities.