Gold, silver, and copper all surge to new highs! Year-end commodity markets reflect inflation concerns

Global commodity markets have experienced a strong rally at the end of the year, with gold, silver, and copper hitting new records. This reflects the dual impact of geopolitical tensions and global supply crises. A “buying frenzy” is currently unfolding in the global commodity trading markets.

Precious Metals Surge Breaks Psychological Barriers

Gold prices surged dramatically, reaching a high of $4,525 per ounce, setting a new all-time record. Silver and platinum followed closely, hitting historic highs of $72.65 per ounce and $2,378 per ounce, respectively.

This wave of precious metal gains is driven by multiple factors. First, rising geopolitical risks have prompted investors to seek safe-haven assets; second, global supply chains continue to face shortages; third, strong buying from institutional and retail investors persists. Analysts note that traditional safe-haven assets like gold, silver, and copper are becoming the preferred tools for risk mitigation among investors.

Copper Breaks New High, Supply Crisis Worsens

In industrial metals, London copper prices broke the $12,000 mark yesterday and continued higher today, rising 0.96% to $12,213. The surge is fueled by two main forces: expectations of U.S. import tariffs prompting traders to preemptively ship copper to the Americas, boosting import demand; and production halts at mines across the Americas, Africa, and Asia, tightening global copper supply. Buyers are fiercely competing for limited spot supplies.

The new high in copper prices reflects deep concerns in the industrial metals market about supply shortages and demand outlooks. The synchronized rise of gold, silver, and copper prices signals market vigilance regarding the global economic outlook and inflation levels.

Stocks and Currencies Rise Together, AUD Hits Year High

Stock and forex markets also show strength. The S&P 500 closed at 6,909 points yesterday, reaching a new record high, supporting gains in Asian stock markets today.

The AUD/USD exchange rate has risen for three consecutive days, reaching 0.6717, its highest in over a year. Expectations that the Reserve Bank of Australia may raise interest rates as early as mid-2026 have supported the Australian dollar. Commonwealth Bank of Australia even forecasts the AUD/USD could rise to 0.68 by year-end.

In the U.S., despite NVIDIA slipping 0.29%, Tesla rose 0.21%, resulting in mixed overall performance. Due to the Christmas holiday, U.S. markets closed three hours early today, and stock index futures also declined slightly—Dow futures down 0.07%, S&P 500 futures down 0.09%, Nasdaq 100 futures down 0.09%.

Goldman Sachs Optimistic About 2026 Stock Market Outlook

Despite short-term volatility, investment institutions remain optimistic about the stock market outlook. Goldman Sachs believes the global equity market has entered a bullish phase, with continued earnings support expected through 2026. Including dividend income, total returns could reach 15%.

The end-of-year performance in commodities and stocks reflects investors’ multifaceted reactions to geopolitical tensions, supply challenges, and rate hike expectations. The simultaneous record highs in gold, silver, and copper symbolize a rare environment where risk assets and safe-haven assets are being pursued in tandem amid high uncertainty.