The commodities market is heating up once again. Silver has surged to a new record high, copper has jumped to a four-month peak, and gold prices is climbing steadily, though not as sharply as silver.
A combination of tight global supply, Trump administration tariff policies, and expectations of upcoming Federal Reserve rate cuts are pushing investors toward both precious and industrial metals.
At the same time, several mining stocks are approaching key buy points, supported by improving demand, shifting market sentiment, and movements in gold prices that continue to attract investor interest.
Trump Tariffs, Tight Copper Supply, and Their Market Impact
One of the biggest drivers behind copper’s latest rally is the Trump administration’s tariff strategy. Markets increasingly expect tariffs to extend to refined copper imports. This anticipation helped lift near-term copper futures by 0.4% to $5.29 per pound. Earlier this year, copper hit a record $5.96 in July amid speculation about a 50% tariff on refined copper.
However, when the administration surprised investors in late July by limiting tariffs to semifinished copper products, prices quickly dropped to $4.35. Even so, many analysts believe that extending tariffs to refined copper is only a matter of time.
Beyond policy factors, global supply issues are tightening the market further. Production setbacks at Freeport-McMoRan, Teck Resources, and Ivanhoe Mines have reduced output more than expected. Meanwhile, demand is rising sharply due to booming electricity needs from AI data centers and the rapid growth of electric vehicles. Since copper is essential for wiring and electrical components, demand continues to climb steadily.
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Record-Breaking Silver, Steady Gold, and Forward Price Projections
The precious metals market is also gaining momentum. Silver surged 3.3% to $59.05 an ounce, breaking last week’s record. Gold rose 0.4% to $4,272 an ounce, attracting renewed attention as investors reassess gold prices in response to shifting monetary policy.
Deutsche Bank recently raised its projections. The bank expects silver to reach $58.50 per ounce by Q4 2026 and average $60 in 2027. For gold, Deutsche Bank lifted its 2026 forecast to $4,450 per ounce, with the potential to spike as high as $4,950 during the year.
Analyst Michael Hsueh highlighted that strong ETF demand is tightening supply even further. Many ETFs store large quantities of precious metals in vaults, reducing the available market supply. This trend has a direct influence on gold prices, as institutional accumulation often drives sharp upward movements.
With expectations of an ongoing silver supply deficit and persistent global uncertainty, investors are watching gold prices closely as an indicator of broader commodity market direction.
Federal Reserve Rate Cuts Expected Soon
The Federal Reserve may deliver a quarter-point rate cut at its Dec. 10 meeting. According to CME Group’s FedWatch tool, markets now assign an 88% probability of a reduction, which would bring the benchmark interest rate down to a 3.5%–3.75% range. Traders also anticipate two or three additional cuts in 2026.
The Fed is prioritizing support for a sluggish labor market, even while inflation remains somewhat elevated. Economic data delayed by the recent government shutdown is expected to be released after the meeting, potentially shifting future policy decisions.
In parallel, President Trump is expected to nominate a new Fed chair who leans more dovish. Kevin Hassett, director of the White House National Economic Council, is widely believed to be the leading candidate. Dovish leadership often weakens the U.S. dollar, another key factor known to push gold prices higher in global markets.
Also read: 24K Gold Price Today in All Markets: Global Gold Price Rise by 1%
Mining Stocks Worth Watching
Mining stocks are stepping into the spotlight as rising metal prices and shifting economic policies reshape the commodities landscape. With global demand climbing and the Federal Reserve signaling potential rate cuts, several mining companies are showing strong technical signals and promising entry points.
If you’re tracking movements in precious and industrial metals, now is the perfect time to take a closer look at the mining stocks that could deliver significant momentum in the near future. Several mining stocks are making notable moves as commodity prices strengthen:
- Freeport-McMoRan (FCX) rose 0.7% and now sits 6% above its 10-week moving average.
- Wheaton Precious Metals (WPM) gained 0.5% after clearing its 108.68 buy point.
- Royal Gold (RGLD) slipped 1.3% and remains 4% below its 209.42 buy point.
- Anglo American (NGLOY) climbed 1.5%, offering an early-entry opportunity.
- BHP Group held steady near its 50-day moving average while attempting to reclaim its 55.38 buy point.
- U.S. Gold (USAU) stayed above its 50-day line despite a slight decline.
For active market watchers, understanding the relationship between global supply dynamics, Federal Reserve policy changes, and movements in gold prices is crucial for navigating opportunities in the metals sector.
