For the first time since 1980, gold, silver and copper have scaled fresh heights within the same calendar year.
- Rising industrial demand for silver and copper, and aggressive gold buying by central banks worldwide, is adding upward pressure on prices.
- Silver has been the top-performing metal, with spot prices rising 85% so far in 2025.
- Inflation concerns, U.S. interest-rate cuts, and a weak dollar have led investors to seek safe-haven assets, leading to rallies in gold and silver prices.
The metals market has been on a tear this year, with gold, silver, and copper all hitting record highs. However, it’s the first time since 1980 that the three metals have notched fresh peaks in the same calendar year.
While metal prices are still being driven by familiar forces such as inflation, geopolitical tensions, and a weaker U.S. dollar, rising industrial demand for silver and copper, along with aggressive gold buying by central banks worldwide, is adding further upward pressure.
“A combination of persistent inflation concerns, U.S. interest-rate cuts, fears surrounding dollar devaluation and substantial central-bank gold purchases continues to underpin prices. These conditions show no signs of changing and should propel all three metals higher in the coming months,” said Nick Cawley, contributing analyst for Solomon Global, as quoted by Marketwatch on Tuesday.
Silver Sees Biggest Rally Among Precious Metals
Silver has been on a record-breaking rally with spot prices topping $58 per ounce for the first time on Monday. While the price fell around 1% on Tuesday, it is comfortably above the 50-day moving average (50-DMA).
The rally stems from a “historic tightening” that began in London, the center of global physical silver trading, in October. According to a report by Saxo Bank’s Ole Hansen, London vault inventories have been steadily drained as shipments flowed to meet strong demand from the U.S. and India. This drop in free-float supply sent lease rates surging, tightening availability and increasing pressure on traders.
Silver spot prices have risen over 85% so far this year.
Gold On Track For Record-Breaking Run
Spot Gold has rallied strongly in 2025, gaining nearly 60%. While the metal has come off its October highs, charts indicate an upward climb. Investors remain bullish about gold’s ongoing rally.
A recent Goldman Sachs survey, which polled 900 institutional clients, found that 36% expect gold to exceed $5,000 per ounce by the end of 2026, while another 33% see prices between $4,500 and $5,000. Over 70% anticipate further gains next year, following a year-to-date surge of more than 60%.
Brokerages echo the optimism, with UBS and Goldman Sachs both projecting gold could reach about $4,900 by 2026, supported by Fed cuts, lower yields, and geopolitical risks.
Both gold and silver have benefited from a weak dollar, lower interest rate expectations, and increased investment in safe-haven assets.
At the time of writing, spot gold fell 1.4% to $4,173.11 an ounce and has gained 60% so far this year.
JPMorgan Expects Copper Rally To Persist
Smelters are engaged in complex negotiations with miners over scarce ore, premiums have jumped, and trader Mercuria Energy Group has reportedly warned of potential shortages in 2025.
While prices eased slightly on Tuesday, copper remains up 28% on the LME this year. The market is also being shaped by U.S. reserves, which remain elevated, with domestic prices at a premium amid potential tariff risks.
Looking ahead, JPMorgan expects the rally to persist, forecasting copper to reach $12,500 a ton by the second quarter of 2026.
“The continued surge in demand for compute remains extremely topical for copper markets, even if overall demand from the sector is growing from a small base. This could translate into about 475 kmt of copper demand in data center installations in 2026, up by around 110 kmt versus this year,” Gregory Shearer, head of Base and Precious Metals Strategy at JPMorgan, said in a note last week.
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