Metals continue to power higher at the start of the week. Tight supplies and robust demand expectations are underpinning a broadly bullish mood across the complex.
In precious metals, gold climbed to fresh records as a range of supportive factors converged. They include geopolitical risks, elevated fiscal uncertainty, strong central bank demand, and ongoing concerns about inflation and monetary credibility. The US Justice Department threatened the Federal Reserve with a criminal indictment, reviving concerns over the central bank’s independence. The dollar fell, boosting the prices of metals. Protests in Iran keep geopolitical tensions elevated, while President Trump has reiterated threats to take Greenland, bringing further upside to precious metals. Gold surpassed $4,600/oz in yesterday’s trading, while silver surged past $85/oz. Silver has already climbed around 20% so far this year, following an almost 150% surge last year. This has pushed the gold/silver ratio below 60, the lowest level since 2013
In industrial metals, copper rose toward a record amid ongoing concerns over supply, while the US continues to import record volumes ahead of any potential tariffs. Comex copper inventories reached an all-time high after expanding for 42 straight weeks. But they remain below total warehouse capacity. This is keeping markets outside the US tight.
Aluminium, meanwhile, traded at its highest since 2022. Supply is tight everywhere except Indonesia, as smelters now face greater competition for power from AI data centres, which are willing to pay much higher prices for long-term contracts.