Commodities wrap: gold, silver hits record high; copper surges 3%

Gold and silver prices hit new record highs on Monday because of safe-haven demand after the US President Donald Trump threatened more tariffs against China. 

Meanwhile, oil prices were also in the green after plunging to a five-month low in the last session. 

Additionally, copper prices surged by 3% after a 5% drop in the last session.

Investors resorted to lower-level buying, which pushed up prices. 

Precious metal rally

Gold prices on COMEX breached the $4,100 per ounce mark for the first time on Monday as the rally continued. 

On the other hand, silver prices on COMEX, too, hit record highs and breached the $50-per-ounce mark for the first time. 

“The rally in both metals currently seems relentless, as recent gains have now extended over multiple sessions and show little sign of fatigue despite being considered extremely overbought,” said David Morrison, senior market analyst at Trade Nation. 

At the time of writing, the December gold contract on COMEX was at $4,107.30 per ounce, up 2.7%.

The same-month silver contract was up 5.7% at $49.945 an ounce. 

The contract had hit a record high of $50.083 per ounce earlier in the day. 

On Friday, the US reignited its trade war with China. In retaliation for Beijing's restrictions on critical mineral exports, the US announced new export controls on critical software, effective November 1, and threatened 100% tariffs on Chinese goods imported into the United States.

However, on Sunday, Trump posted on Truth Social, stating: 

Meanwhile, Bank of America has raised its 2026 gold price outlook, projecting the metal to reach $5,000 an ounce and silver to hit $65 an ounce.

Oil prices

Oil recouped some of the losses from Friday as investors resorted to lower-level buying after prices had slipped to a five-month low. 

Market sentiment received a boost on Monday following the release of the final 20 surviving Israeli hostages by the Palestinian militant group Hamas. 

This action, part of a US-brokered ceasefire agreement, was widely considered a significant stride towards concluding the two-year conflict in Gaza. 

US President Donald Trump hailed the development, declaring it the "historic dawn of a new Middle East."

Last week, China announced restrictions on rare earth and other critical mineral exports, which prompted Trump to threaten 100% tariffs on Chinese goods imported into the US.

This action was widely perceived as another obstacle to global trade, which would logically result in decreased demand for energy products.

Oil prices tumbled as traders rapidly sold off their holdings, causing front-month WTI to drop below $60 per barrel.

The price continued to fall, breaking $58 and reaching its lowest point since early May.

Morrison said:

The WTI crude price was at $59.53 a barrel, up 1.1%, while Brent was up 1% at $63.35 a barrel. 

Base metals

Copper prices rose sharply on Monday after a 5% fall on Friday. 

Aluminium and zinc prices also rose as investors believed trade negotiations between the US and China could still be possible. 

A potential meeting between Trump and Chinese President Xi Jinping, anticipated for later this month, was uncertain after Trump's statement on Friday indicated no reason for such a meeting. 

However, US Trade Representative Jamison Greer suggested on Sunday that a meeting could still occur in South Korea, coinciding with the Asia-Pacific Economic Cooperation forum.

“The trade spat added an uncertain backdrop for the annual LME Week, but the focus could shift back to bullish fundamentals, including accidents at copper mines and long-term demand growth driven by electrification,” Neil Welsh, head of metals at FCA-regulated multi-asset brokerage Britannia Global Markets, said in an emailed commentary.

UBS has increased its copper price forecasts for 2026 and 2027, attributing the revision to a tightening supply market and disruptions, including the Grasberg outage. 

Concurrently, LME Week commenced on Monday under the cloud of US-China trade tensions.

At the time of writing, the three-month copper contract on the London Metal Exchange was at $10,751.60 per ton, up 3.3%.