Gold, silver, copper, and tin have surged to fresh records, extending a dramatic start to 2026.
Investors are betting on further US rate cuts and a revival in sentiment across Chinese financial markets.
Commodities have posted eye-watering gains since late 2025 as traders position themselves for a year in which the US Federal Reserve is expected to cut borrowing costs further to bolster growth.
Silver jumped as much as 5.3% to top $90 an ounce for the first time on Wednesday, while gold surged past $4,630. Tin led the rally among base metals, climbing as much as 6%, while copper briefly touched an all-time high before easing.
Precious metals are benefiting from renewed attacks on the Fed by the Trump administration and an increasingly tense geopolitical backdrop. The so-called “debasement trade,” in which investors shun government bonds and currencies due to ballooning debt concerns, has also underpinned the rally.
Many metals are gaining from prospects of stronger manufacturing demand, particularly in growth sectors such as artificial intelligence.
Gold rose above 60% last year, while silver soared nearly 150%, their best annual performance since 1979.
The rally coincides with Nigeria’s Federal Government announcing the commencement of operations at a high-purity gold refining plant in Lagos.
Officials described the move as a major step in repositioning Nigeria as Africa’s leading minerals processing hub, shifting decisively away from raw mineral exports.
In addition, progress was announced on three more gold refineries across the country and a $600 million lithium processing plant in Nasarawa State, which is ready for commissioning.
A speculative surge in China has turbocharged the latest rally, with traders and funds piling into commodities such as copper, nickel, and lithium.
Trading volumes on the Shanghai Futures Exchange have been elevated since late December, with total open interest across six base metals hitting a record on Wednesday.
Supply constraints have further fueled gains. Copper markets faced multiple disruptions last year, aluminum output was limited in China, and tin exports were curbed from Indonesia, the world’s second-largest supplier.
Silver and copper have also been buoyed by the prospect of US import levies. Copper’s gains were partly driven by expectations of a White House decision on import taxes later this year, prompting traders to rush shipments to US ports.
Markets are awaiting the outcome of a US Section 232 investigation, which could impose tariffs on precious metals including silver, platinum, and palladium.
The uncertainty has led to backwardation in London’s spot market, where near-term prices trade above futures, signaling tightness.
The uncertainty has led to backwardation in London’s spot market, where near-term prices trade above futures, signaling tightness.
Gold is projected to maintain its upward trajectory, surging by 15-30% in 2026, according to a new outlook released by the World Gold Council.
The precious metal delivered a standout performance in 2025, recording more than 50 all-time highs and generating returns of over 60%.