Gold and copper are grabbing headlines in global markets this week. With investors closely watching U.S. economic data, interest rate signals, and global trade tensions, commodities are once again the center of attention.

Gold is pushing toward the $3,400/oz mark, supported by safe-haven demand and central bank buying. At the same time, copper prices are climbing above $5.10/lb, thanks to supply constraints and booming industrial demand tied to electrification.

Gold Price Rises on Safe-Haven Demand and Central Bank Buying

Gold prices are currently hovering near $3,337 per ounce, following a strong rebound in recent days. This comes after a modest pullback from April’s record high of around $3,500. Analysts describe this recent dip as a healthy correction, not a sign of weakness.

Why is Gold Rising?

• Geopolitical tension: Ongoing trade concerns and unstable global politics are pushing investors toward safe-haven assets.

• High debt and inflation: Rising government debt and persistent inflation increase gold’s appeal as a store of value.

• Central bank demand: Emerging market central banks are accumulating gold to diversify reserves.

HSBC Forecast

HSBC has raised its 2025 gold price forecast from $3,015 to $3,215, citing strong global demand and macroeconomic uncertainty. For 2026, it predicts an average of $3,125, with price ranges expected between $3,100 and $3,600.

What’s Next for Gold?

Traders are watching this week’s U.S. non-farm payroll data and inflation reports. A weaker-than-expected jobs report could boost gold further by putting pressure on the U.S. dollar.

In addition, Federal Reserve Chair Jerome Powell recently noted that tariffs are a major reason for delaying interest rate cuts. This uncertainty adds to gold’s upward momentum.

Copper Climbs to $5.10 on Strong Industrial Demand

Copper futures rose nearly 0.85%, with prices reaching $5.10/lb on the COMEX exchange. The increase is driven by both strong demand and tightening global supply.

Why is Copper Gaining?

• Infrastructure growth: The global push for electric vehicles, solar power, and grid upgrades is fueling demand.

• Supply concerns: Disruptions in Chile and Peru, the world’s top copper producers, are creating supply pressure.

• Technical strength: Copper’s price action shows strong support levels, with buying volume increasing across futures markets.

Trading volume for copper hit over 62,000 contracts today, reflecting strong interest from institutional investors and commodity funds.

What It Means for Investors

Gold:

• If prices break above $3,400, a run toward $3,500 is possible.

• It remains a strong hedge against inflation, currency weakness, and geopolitical risk.

Copper:

• Long-term demand remains strong.

• Pullbacks could offer buy-the-dip opportunities, especially for investors focused on the clean energy transition.

Forex Impact: Watch Commodity Currencies

Movements in gold and copper also affect foreign exchange markets:

• A weaker U.S. dollar tends to support both metals.

• Rising copper prices often strengthen commodity-linked currencies like the Australian dollar (AUD), Canadian dollar (CAD), and Chilean peso (CLP).

Conclusion

With gold approaching $3,400 and copper hitting new highs above $5.10, the commodity market is showing renewed strength. Whether driven by safe-haven demand or real-world infrastructure needs, both assets are flashing strong signals for the second half of 2025.

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