Lower interest rates combined with geopolitical risks, precious metals collectively surge! Institutions predict new highs will continue into 2026

Frequent All-Time Highs, Four Major Metals Rise Together

Entering 2025, the precious metals market is unusually hot. On December 22nd alone, the prices of gold, silver, copper, and other commodities rose simultaneously, with platinum surging to $2097 per ounce, reaching a record high since 2008. Palladium also broke through $1800 per ounce, refreshing the high point of 2023. Behind this collective rally reflects strong global capital demand for safe-haven assets.

Data demonstrates the strength of this rally—since the beginning of 2025, gold has increased by a total of 68%, silver by as much as 133%, platinum by 129%, and copper by 36%. Such a uniform upward trend is rare in the commodity market.

Multiple Factors Converge, Safe-Haven Sentiment Warming

This metals frenzy is no coincidence. The Federal Reserve has completed 3 interest rate cuts in 2025, and the market expects two more cuts in 2026, with loose monetary policy directly supporting the attractiveness of precious metals. Coupled with ongoing geopolitical risks, such as U.S. sanctions on Venezuela’s oil, these policies have boosted overall safe-haven demand.

Supply-side pressures are also noteworthy. Expectations of potential U.S. tariffs have led traders to stockpile large quantities of silver and copper, seeking arbitrage opportunities, further tightening global supply. Under the influence of multiple factors, institutional funds are pouring into the precious metals market.

Institutional Optimism, Bullish Outlook for 2026

Regarding the future market, mainstream Wall Street views are generally optimistic. Goldman Sachs predicts that in 2026, global central banks will continue to buy gold enthusiastically, and with the Federal Reserve expected to cut interest rates by another 50 basis points, gold prices could reach $4900 per ounce. Even more aggressive, Bank of America forecasts gold could hit $5000 per ounce.

The potential of silver is also highly regarded. Analysts point out that the current gold-silver ratio still has room for further adjustment, implying silver remains undervalued relative to gold. Silver prices in 2026 are expected to reach $75 per ounce, with any pullback seen as a buying opportunity. France’s BNP Paribas further predicts that by the end of 2026, silver could surge to $100 per ounce.

The copper market is no exception. Influenced by U.S. stockpiling leading to supply shortages in other regions, copper prices are expected to reach an average of $13,000 per ton in Q2 2026. Behind these forecasts lies an assessment by institutions of abundant global liquidity and long-term geopolitical risks.