Will precious metals still have a chance in 2026? The three main drivers behind gold, silver, and copper reaching new highs

In the past week, the global commodities market has experienced a surge. Precious metals and industrial metals have taken turns reaching new highs, with gold rising for eight consecutive days and silver showing an astonishing increase. Copper prices have also stabilized at high levels. Is this rally a short-term fluctuation or a long-term trend?

The Numerical Story Behind the Phenomenal Rise

The year-to-date gains tell the story clearly. Gold has increased by a total of 68%, silver soared by 133%, platinum rose by 129%, and copper prices have also climbed by 36%. Just looking at silver’s performance is enough to draw attention — this is not only a price increase but also reflects the market’s desire for safe-haven assets.

Specifically, platinum has surpassed $2097/oz, reaching a new high since 2008, while palladium has broken through the $1800/oz mark. Behind these numbers are collective bets from central banks, investors, and hedge funds worldwide.

Three Logical Layers Supporting This Rally

The Beginning of an Interest Rate Cut Cycle

The Federal Reserve has completed three rate cuts by 2025, with market expectations of two more cuts in 2026. In a low-interest-rate environment, precious metals like gold and silver, which do not generate interest, become more attractive. This is the fundamental logic behind the recent commodities bull market.

Geopolitical Risks and Supply Constraints

U.S. sanctions on Venezuelan oil, tense global energy situations, and potential tariff shocks have all contributed to increased hoarding behavior among traders, intensifying supply-side tensions. The structural shortages of silver and copper are particularly evident, as traders significantly increase inventories in anticipation of arbitrage opportunities, further boosting market sentiment.

Central Bank Gold Purchases Becoming Routine

Global central banks continue to buy gold strongly, providing support on the demand side. Regardless of short-term market fluctuations, central bank gold buying remains relatively stable, forming a price floor.

What Do Institutions Say About 2026?

Optimism remains for gold. Goldman Sachs predicts that gold will break through $4900/oz in 2026, and even Bank of America has set a target of $5000/oz. These forecasts are based on continued rate cuts and persistent central bank gold purchases.

The outlook for silver may be even more attractive. Strategist Michele Schneider points out that the gold-silver ratio still has room to decline, implying that silver has the potential for further gains relative to gold. Institutions forecast silver prices in 2026 to range between $75 and $100/oz, indicating considerable upside potential.

Regarding copper, Citibank believes that due to hoarding in the U.S. and supply shortages in other regions, the average copper price in Q2 2026 could reach $13,000 per ton.

Opportunity or Risk?

The logic chain of this rally is clear: rate cuts → inflow of safe-haven funds → continued central bank gold purchases → geopolitical instability → tight commodity supply. However, any change in a single link could impact the overall trend. The 2026 commodities market is full of opportunities but also hidden variables. Market participants need to grasp the big trend while closely monitoring the evolution of these key variables.