(Bloomberg) — Metals extended their dramatic start to the year — with gold, silver, copper and tin all hitting record highs — as investors bet on a boost from more US rate cuts and a revival in sentiment across Chinese financial markets.
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Commodities have posted eye-watering gains since late 2025 as traders position themselves for a year in which the Federal Reserve is expected to cut borrowing costs further to bolster US growth. That’s aided the case for base metals, while precious metals are also benefiting from renewed attacks on the Fed by the Trump administration and an increasingly tense geopolitical backdrop.
Silver jumped as much as 5.3% to top $90 an ounce for the first time on Wednesday, while gold notched another all-time peak. Tin was the standout among base metals, and was up as much as 6% at one point, while copper hit an all-time-high before paring gains. Many metals are benefiting from prospects for better manufacturing demand, including in growth sectors like artificial intelligence.
The so-called debasement trade — in which investors avoid government bonds and currencies due to worries over ballooning debt levels — has also underpinned the rally, especially in precious metals. A relatively weak greenback makes dollar-denominated commodities cheaper for many buyers. Gold rose 65% last year, while silver jumped almost 150%, with each metal seeing its best annual performance since 1979.
“When gold moves first, it usually signals declining trust in fiat currencies,” said Hao Hong, chief investment officer at Lotus Asset Management Ltd. and an influential Chinese market commentator who has backed metals. “Everything is measured against gold, then most assets look cheap right now, which is a strong tailwind for commodities, especially metals.”
A speculative frenzy in China has helped turbocharge the metals rally, with traders and deep-pocketed funds piling into commodities like copper, nickel and lithium. Trading volumes on the Shanghai Futures Exchange have been elevated since late December, and total open interest across SHFE’s six base metals hit a record on Wednesday.
Trade Turmoil
Base metals have broadly benefited from expectations of tighter supply this year as global mines and smelters struggle to keep up with demand. The copper market saw multiple major disruptions last year, while aluminum faced constraints in top producer China, and tin exports were crimped from second-biggest supplier Indonesia.
“A broader base of investors is starting to recognize the more structural trend of some metals as well as the problem on the supply side,” said Alexandre Carrier, portfolio manager at DNCA Invest Strategic Resource Funds.
And some of the commodities — notably silver and copper — have been aided by the prospect of US import levies. Copper’s gains have been partially driven by a looming White House decision on import taxes later this year, prompting traders to rush metal to US ports.
❓ FAQs (People Also Ask)
Q1. Why are gold, silver and copper prices rising together?
Because of high inflation, weak currencies, strong industrial demand and increased investor buying.
Q2. Is this a good time to invest in gold and silver?
Experts suggest long-term investors can consider buying on dips, but short-term volatility is possible.
Q3. Why is copper hitting record highs?
Strong demand from China, electric vehicles, renewable energy and infrastructure projects is driving copper prices.
Q4. Will metal prices continue to rise in 2026?
Prices may stay strong if inflation remains high and interest rate cuts happen, but corrections can occur.
Q5. How does the metals rally impact Indian investors?
Global price rise leads to higher gold and silver rates in India, affecting jewellery buyers and investors.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.
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