SunSirs: Precious Metals Soar! Gold, Silver, Copper, and Platinum All Hit Record Highs

On December 24, the global precious metals market witnessed a collective surge.

London spot gold prices broke through $4,500 per ounce during intraday trading, setting a new historical record.

Both New York silver futures and London spot silver prices surged past the $72 per ounce threshold, with their year-to-date gains far outpacing gold.

Spot platinum surged past $2,300 per ounce for the first time in history, accumulating over 150% gains this year—marking its largest annual increase since data compilation began in 1987.

London copper prices surged past $12,159.50 per ton, setting a new all-time high.

While specific drivers varied across asset classes, analysts noted that this collective and unexpectedly strong rally in precious metals stemmed from multiple factors: expectations of loose monetary policy, persistent geopolitical risks, and structural imbalances in industrial supply and demand.

Gold May Continue to Rise

Spot gold prices continued to climb on December 24, hitting an intraday high of $4,511.93 per ounce. At press time, gold maintained its position near $4,509.73 per ounce, setting another record high.

Year-to-date, gold prices have surged approximately $1,880 per ounce. The price of spot gold denominated in renminbi has surged over 64%.

A report by Orient Gold Credit indicates that this round of gold appreciation primarily stems from the U.S. November unemployment rate reaffirming labor market weakness, prolonging market expectations for monetary easing. While current U.S. core inflation remains elevated, it continues to decelerate. Coupled with unemployment exceeding full employment estimates and trending upward, these factors provide data support for the Federal Reserve to cut interest rates.

World Gold Council data indicates that sustained large-scale purchases by central banks have provided a solid foundation for this gold bull market. Simultaneously, capital continues to flow into gold ETFs, with global gold ETF holdings rising every month this year except May.

Among them, the world's largest precious metals ETF—SPDR Gold Trust under State Street Corporation—has seen its holdings increase by more than one-fifth this year.

Muthoot Fincorp's chief economist noted that recent inflows into gold ETFs primarily stem from retail investors with lower capital stickiness, suggesting gold price volatility may remain elevated.

Regarding future trends, Goldman Sachs forecasts gold prices to reach $4,900 per ounce under its baseline scenario for 2026.

Silver Outperforms Gold

Since December, silver has surged strongly, successively breaking through the $60/oz and $70/oz thresholds. As of press time, London silver traded at $72.255/oz, up over 150% year-to-date; COMEX silver traded at $71.895/oz, up over 130% year-to-date. Thus far, silver's annual gains have far outpaced those of gold.

Unlike gold's safe-haven appeal, silver's rally stems from dual drivers: investment demand and industrial usage. Holdings in global silver ETFs have climbed steadily, while major consumer nations like India saw buyers importing silver in bulk ahead of the Hindu festival of Diwali. This surge in demand briefly strained supply in the London benchmark market.

From an industrial perspective, silver is deeply embedded in global supply chains, widely used in electronics, solar panels, and medical device coatings. According to the Silver Institute, global silver demand has exceeded mine production for five consecutive years, creating a structural shortage.

Market analysis suggests that accelerating global green energy transitions will drive sustained growth in silver demand from the solar photovoltaic industry, potentially further tightening the silver market's supply-demand balance.

Platinum Emerges as Top Performer

Within the precious metals family, platinum has become this year's standout “rising star.” On December 24, spot platinum prices surged past $2,300 per ounce, setting a new all-time high.

Platinum prices have now risen for 10 consecutive trading days, marking the longest winning streak since 2017. Year-to-date, platinum has surged over 150%, delivering its best annual performance since Bloomberg began tracking data in 1987.

The hydrogen energy industry has created new demand growth for platinum. As the preferred catalyst for hydrogen fuel cells, platinum's utility has become increasingly prominent. Deng Weibin, General Manager of the World Platinum Investment Council for Asia-Pacific, noted that compared to gold, “white precious metals” like platinum and silver possess safe-haven attributes while being deeply tied to industrial demand and the global energy transition. Their pricing logic has partially detached from traditional precious metal frameworks, forming a certain green premium.

According to Bloomberg, the platinum market is heading toward its third consecutive year of supply shortages this year due to disruptions in South Africa, a major producer.

Simultaneously, high borrowing costs are prompting industrial users to favor leasing over direct purchases of platinum, further tightening the spot market.

Additionally, trade risks represent another critical variable. Markets are closely monitoring the outcome of Washington's Section 232 investigation, which could lead to tariffs or trade restrictions on platinum. To hedge against this risk, traders have stored over 600,000 ounces of platinum in U.S. warehouses—a volume far exceeding normal levels.

Copper Supply Tightens

Copper prices, often seen as a barometer of the global economy, also hit a record high on December 24, with the London Metal Exchange (LME) three-month copper contract surpassing $12,000 for the first time.

Since October last year, copper prices have repeatedly set new records, driven by macroeconomic factors including global supply chain constraints, growing demand from the new energy sector, and a weakening U.S. dollar.

Copper is widely used in power generation, construction, and new energy vehicles. The global energy transition and infrastructure development provide long-term support for copper demand.

Supply shortages remain the primary driver of copper's price surge. Production halts at multiple global mines have tightened supply, particularly in key copper-producing regions facing operational disruptions. Concurrently, potential tariff policies under the Trump administration prompted market players to stockpile ahead of time, exacerbating supply constraints. Driven by tariff risks, substantial copper shipments were preemptively directed to the U.S., leading to persistent inventory declines elsewhere.

Market analysis suggests that copper prices may open up further upside potential after breaking through the key resistance level of $12,000 per ton. With major global economies advancing energy transitions and infrastructure development, the long-term demand outlook for copper remains optimistic. However, elevated copper prices may also dampen certain consumption segments and stimulate the research, development, and application of alternative materials. These factors will influence copper price trends in the future.

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