Gold and silver surged through important price barriers on Monday, driven by a weakening US dollar and growing concerns about global trade tensions. Gold broke above its downtrend from April’s record high, establishing new support at $3,325, while silver posted its strongest one-day gain since October, jumping 5.4% to breach the key $33.68 level.
The rally reflects deeper concerns about US fiscal health, with $9.2 trillion in Treasury securities maturing in 2025—equivalent to 30% of US GDP. Investors are increasingly seeking alternatives to US assets, pushing precious metals higher as a hedge against potential economic instability.
Meanwhile, copper markets remain volatile as traders await the US Commerce Department’s decision on import tariffs. President Trump has threatened 25% duties on copper imports, which could significantly impact global markets. The uncertainty has created a wide trading range, with the New York-London copper spread fluctuating between 6% and 15%.