Gold (GC=F) rose close to $5,000 per ounce on Friday while silver (SI=F) touched $100 in what has been an epic rally for precious metals. Bullion is headed toward its best week since 2020, gaining 13% year-to-date. Goldman Sachs noted private sector investors have been getting in on the epic rally in addition to central banks' accumulation of gold. Strategists cite a weaker US dollar, expectations of Federal Reserve easing, large fiscal deficits, and fading demand for government debt. Earlier this week ...

Core Insights - Silver and copper are emerging as the standout metals heading into 2026, with significant gains in their respective ETFs, indicating strong investor interest and positioning for potential rallies [2][3] - iShares Silver Trust (SLV) has seen a remarkable increase of approximately 96% this year, while United States Copper ETF (CPER) has advanced about 31.7% [2] - A historic supply crunch in the silver market, driven by soaring demand from India and silver-backed ETFs, has contributed to the price surge of silver [3] Silver Market Dynamics - Silver has nearly doubled in price this year, with most gains occurring in the last two months, attributed to a supply squeeze in the London market [3] - Silver's price is currently trading at an 82% premium to its five-year average, nearing its most stretched year-end level since 1979, indicating potential for further price movement [6] - Industrial demand for silver is rising, particularly in green energy applications and the automotive industry, which is expected to drive higher demand [6] Copper Market Fundamentals - Copper's price rally is primarily driven by long-term fundamentals rather than financial speculation, with increasing demand for electrification expected to outpace supply [7] - Morgan Stanley projects a significant copper market deficit of 590,000 tons in 2026, with a base case price forecast of $10,650 per ton and a bull case of $12,780 per ton [8] Market Conditions and Trends - The Federal Reserve has enacted two rate cuts in 2025, with expectations for further cuts, which typically support non-yielding assets like silver, gold, and copper [10] - A weaker U.S. dollar, influenced by potential rate cuts, is expected to favor global metal prices, as most metals are priced in dollars [12]