Gold and silver’s record-breaking run showed no sign of stopping before a pullback this afternoon, as analysts warn the ‘volatile’ run is ‘highly unusual’.
One went as far to suggest the run could signal ‘difficult’ times are on their way for stock market investors.
The precious metals have kept breaking new records this month, with gold nearing $5,600, having started the week at $5,000, before pulling back to $5,100 by the afternoon.
Bullion climbed 64 per cent in 2025, and today’s rally added as much as $211.33, or 4.2 per cent, to the price, before trading down 1.5 per cent.
Silver, meanwhile, reached a new high of $120, before pulling back to $112. It is trading 18 per cent higher over the week.
Copper is also starting to pick up, with prices on the London Metals Exchange jumping to as high as 14,000 per tonne as investors look for exposure elsewhere.
Mounting geopolitical tensions are the primary driver for the uptick in prices of precious metals, which are seen as a haven in tumultuous markets.
All that glitters: Precious metal prices are surging as investors flock to safety
This week, indications that the US may take action on Iran are driving oil prices higher too. Brent crude surged to a six-month high as traders price in fears of escalation in the Middle East.
The surge in precious metals helped to propel most of the FTSE’s biggest miners to the top of the index this morning.
Fresnillo and Endeavour Mining were up 1.8 per cent and 4.9 per cent respectively, while Antofagasta jumped 7 per cent to 3,963p on surging copper prices, which offset a lower output of the metal.
‘Everyone can see the madness in metals prices, but there seems no sign of it slowing down,’ said Chris Beauchamp, chief market analyst at IG.
‘Investors can be forgiven for hoping that the vast profits set to be reaped by miners will translate into better dividend payments in the near future.’
Glencore reached its full-year production guidance for a second year running, with copper output in the second half almost 50 per cent higher than the first half. Shares gained 3 per cent this morning, and are up 27 per cent year-to-date.
When will the gold run come to an end?
Analysts are increasingly bullish on where precious metals might go this year, with some suggesting it could reach $6,000 per ounce.
Deutsche Bank said heightened tensions and higher defence spending create a long-term case for gold, while RBC says bullion could push as high as $7,100 if last year’s rally continues at a similar pace.
However, Neil Wilson, Saxo’s UK investor strategist warns that the recent precious metals run ‘has all the hallmarks of a speculative squeeze that is increasingly disorderly, volatile and dangerous’.
He added: ‘We know the backdrop and solid fundamentals to this trade, but the moves are highly unusual. The volatility can be self-sustaining as market makers become reluctant to take and hold positions, leading to thinner liquidity and greater volatility.’
Even if gold continues its record run, Stifel analysts say it isn’t good news for the stock market.
The investment bank flagged gold has surged more than 20 per cent this year, while the S&P 500 has gained just 1 per cent.
The rally has broken down a long-standing price relationship between stocks and gold, which is a rare signal that has typically been followed by ‘difficult’ years for investors.
‘Perhaps ‘this time is different’ and both the S&P 500 and gold will continue to soar, but to us that sounds like wholesale flight from fiat money, which has never ended well in history,’ analysts said.
Elsewhere, Goldman Sachs forecasts copper prices to decline to $11,000 per tonne by the end of the year, following a decision on tariffs.
‘Buyers have been stockpiling copper in the US in advance of the expected import tax, creating expectations of temporary scarcity outside of the US,’ said analyst Eoin Dinsmore. ‘We do not expect the price above $13,000 to be sustained.’
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