Everything You Need to Know About the Surging Metal Prices

Friday was an exhilarating day for the metals market, as gold futures reached their highest settlements on record, and silver prices achieved their highest close since 2013.

Dollar-denominated metals prices — gold and silver in particular — have found more recent support from weakness in the U.S. dollar, analysts have said. David Miller, chief investment officer and senior portfolio manager at Catalyst Funds, stated that the federal government's $1.5 trillion deficit is weakening the U.S. dollar and comparatively strengthening precious metals.

Copper, unlike gold and silver, is not considered a precious metal but has seen a price increase due to expectations of growing demand. Factors such as tighter global supplies, improved world economic growth, smelter issues in China, and market speculation, including a potential 'short squeeze' in Comex copper futures, are contributing to this rise, according to Jim Wyckoff of Kitco.com.

Joe Maher from Capital Economics noted that the strong demand for copper, driven by its use in electric vehicles and renewable energy projects, along with potential supply shortages, justify the high prices.

Bloomberg Intelligence Senior Commodities Strategist Mike McGlone shared insights on metals and future market trends on Market Domination Overtime. McGlone discussed the potential impact of China's interest in buying precious metals, noting that while China has been a major buyer of gold, there are rumors of silver hoarding as well. He expressed concern that silver might follow copper's volatile pattern of spiking and then dropping. However, McGlone remains generally positive about commodities, especially metals, compared to other commodity types.