Gold, silver, copper surge as explosive rally sweeps over metals market
Gold (GC=F), silver (SI=F) and copper (HG=F) climbed to new highs on Wednesday, continuing the explosive rise that marked the first two weeks of January.
Gold futures reached $4,650 per ounce, marking a 5% year-to-date gain. Wall Street analysts have raised their forecasts in recent days in light of U.S. intervention in Venezuela, geopolitical tensions with Iran and growing questions about the independence of the Federal Reserve.
“We see gold reaching US$5,000/oz in the coming months amid hedging demand driven by ongoing macroeconomic, policy and geopolitical concerns,” Ulrike Hoffmann-Burchardi, head of global equities and CIO Americas at UBS Global Wealth Management, said on Wednesday. he said.
“Although we note downside risks given the current high premium, if political or financial risks increase, the gold price may also rise higher than we anticipated to USD 5,400/oz,” he added.
His view echoed that of Citi analysts who said earlier this week that gold could reach $5,000 in the next three months and silver could reach $100 an ounce.
Silver traded above $91 per ounce on Wednesday, pushing total market capitalization above $5 trillion for the first time.
The massive rise in metals underscores an emerging metals war as countries mobilize to secure critical resources and compete in the accelerating race for artificial intelligence.
Supply gap concerns, recent export curbs from China, and a squeeze on open interest have sent silver up 20% since the beginning of the year, contributing to its nearly 150% rally in 2025.
Read more: What awaits stocks and gold in 2026? What are experts watching?
Saxo Bank’s Ole Sloth Hansen said technical signals for the metal were flashing in the direction of “overbought” but the cycle was “further reinforced by something deeper: growing unease about fiscal discipline, monetary reliability and financial stability.”
Hansen emphasized that silver is both a monetary and industrial metal, “benefiting from the same fear-driven demand that drives gold,” but with exposure to the electrification, solar energy and electronics industries.
“This dual identity is what makes it so explosive when the stars align,” Hansen wrote in a note Wednesday.
Copper also hit an all-time high on Wednesday, rising above $6 per pound in the US and over $13,000 per ton in London. Concerns about a possible import tax decision by the Trump administration have led to an acceleration in shipments to the United States in recent months, causing global supply to shrink.
Goldman Sachs warned of a pullback as analysts expected the refined copper tariff decision would be delayed or not implemented at all.
