Why gold and silver just surged to fresh all-time highs

Core Insights - The year 2025 has seen significant price increases in gold, silver, and copper, driven by investor demand for defensive assets and expectations of interest rate cuts [1][4][8] Group 1: Gold Market - Gold prices have surpassed $4,450 an ounce for the first time, marking a year-to-date increase of 67%, positioning it for its best annual rise since 1979 [2] - The appeal of gold is heightened by expectations of lower interest rates, which diminish the yield on bonds and cash, making gold more attractive [4][5] Group 2: Silver Market - Silver prices have reached a record $69 an ounce, with a year-to-date increase of 130%, also on track for its best year since 1979 [2] - The rise in silver prices is influenced by macroeconomic factors and geopolitical developments, alongside its role in the AI trade [6][8] Group 3: Copper Market - Copper has risen to nearly $12,000 a ton, with a year-to-date increase of 40%, marking its best return since the Great Financial Crisis [3] - The metal's price increase is linked to supply pressures and its association with the AI sector, as it is essential for data centers and electrification [7][8] Group 4: Market Dynamics - Geopolitical tensions, particularly regarding Venezuelan oil shipping, have driven investors towards safe-haven assets, contributing to the price increases of gold, silver, and copper [6] - The Federal Reserve's potential interest rate cuts are seen as a factor that could further debase the US currency, enhancing the attractiveness of hard assets like gold [5]