Gold (GC=F), silver (SI=F), and copper (HG=F) climbed to new highs on Wednesday, extending an explosive rally to mark the first two weeks of January.
Gold (GC=F) futures hit a high of $4,650 per troy ounce, marking a 5% year-to-date gain. Wall Street analysts upped their forecasts in recent days given the recent US intervention in Venezuela, geopolitical tensions with Iran, and growing questions about Federal Reserve independence.
“We see bullion reaching USD 5,000/oz in the coming months amid hedging demand stemming from ongoing macroeconomic, policy, and geopolitical concerns,” Ulrike Hoffmann-Burchardi, CIO Americas and global head of equities at UBS Global Wealth Management, said on Wednesday.
“While we note the downside risks given the current elevated premium, the gold price could also climb higher than we forecast to USD 5,400/oz if political or financial risks increase,” she added.
Her outlook mirrors that of Citi analysts, who earlier this week said gold could hit $5,000 within the next three months, while silver could reach $100 per ounce.
On Wednesday, silver traded above $91 per ounce, pushing its total market value above $5 trillion for the first time.
The massive rally in metals underscores a metals war that is occurring as countries move to secure critical resources and compete in the accelerating AI race.
Supply deficit concerns, recent export curbs from China, and a squeeze on short positions have driven silver up 20% since the start of the year, adding to its nearly 150% rally in 2025.
Saxo Bank’s Ole Sloth Hansen notes technical signals for the metal are flashing “overbought”, but the cycle has been “supercharged by something deeper: growing unease about fiscal discipline, monetary credibility, and financial stability.”
Hansen highlighted silver is a monetary metal and an industrial one, “benefiting from the same fear-based demand that drives gold,” but with exposure to electrification, solar energy, and electronics industries.
“That dual identity is what makes it so explosive when the stars align,” wrote Hansen in a note on Wednesday.
Copper also hit all-time highs on Wednesday, reaching above $6 per pound in the US, or more than $13,000 per tonne in London, as concerns over a potential import tariff decision from the Trump administration prompted an acceleration of shipments to the US in recent months, tightening global supply.
Goldman Sachs warned of a pullback as analysts expect that ultimately a refined copper tariff decision will be delayed or not implemented at all.
