Gold and silver surged to fresh record highs as escalating geopolitical tensions boosted demand for safe-haven assets. The latest catalyst is renewed friction between the US and Europe, with Trump’s intensifying push to take control of Greenland stoking concerns over a potential transatlantic trade conflict.
Both gold and silver have extended their strong year-to-date gains. Gold is up around 8%, while silver has climbed 30%, building on an already robust performance in 2025. The move has been driven by a series of geopolitical shocks, including the US arrest of Venezuela’s leader and the continued uncertainty surrounding Washington’s stance on Greenland.
Adding to the volatility, the Trump administration’s repeated attacks on the Federal Reserve intensified investor concerns about central bank independence. This has reinforced the debasement trade. Investors are favouring gold and silver over currencies and government bonds amid rising US debt levels and heightened policy unpredictability.
In industrial metals, copper climbed toward $13,000/t, rebounding after last week’s volatility. The move was driven largely by macro and dollar dynamics. Trump’s threat of new tariffs on several European countries pushed the dollar lower, sparking broad-based metals buying. Sentiment was further supported by China’s GDP meeting the government’s target. This helped stabilise demand expectations following weeks of mixed data.
Meanwhile, copper inventories in US warehouses tracked by the LME rose for the first time since September 2025. As of yesterday, they increased by 950 tonnes, climbing from zero. The build follows a notable flip in relative pricing with LME spot now trading above Comex front-month futures, reversing last year’s pattern that drew huge volumes of copper into the US and left ex-US markets tight. This suggests the extreme tariff-driven distortions that defined much of 2025 may be beginning to normalise.