Gold, silver, and copper prices have all hit record highs at the same time, staging a "triple rally." Expectations for U.S. interest rate cuts and a rise in real demand driven by the expansion of the AI industry are supporting the gains. But some said investors should be cautious because commodities are prone to sharp swings.
On the 5th, according to Koscom ETF Check, "Korea Investment & Securities Silver Futures" exchange-traded notes (ETN) rose 23.82% over the past month (Nov. 28–Dec. 4), ranking No. 1 in ETF returns. ETFs such as "KODEX Silver Futures (H)" (20.73%) and "TIGER Physical Copper" (6.71%) also ranked among the top commodity products by return.
A "triple rally" has emerged as commodity prices for gold, silver, and copper jump in unison. According to U.S. financial media MarketWatch, silver futures hit a record high of $59.14 per ounce (31.1 grams) on the 1st of this month. Copper futures hit a record high of $5.8195 per pound in July, and gold futures hit $4,359.40 per ounce in October. It is the first time in 45 years since 1980 that futures prices for all three metals have hit a record high in the same year.
Gold's rally is continuing as expectations grow for U.S. rate cuts and the dollar weakens. In addition, as stock market volatility widens on concerns about an economic slowdown, a stronger preference for safe assets has further boosted gold demand.
Hwang Byung-min, a researcher at NH Futures, said, "In the end, gold is the representative safe asset and at the same time the only inflation hedge asset," adding, "The Central Bank of the United States, the Federal Reserve (Fed), attempting to cut the benchmark interest rate could increase the possibility of inflation due to tariff effects."
The key driver of the surge in silver and copper prices is expanding industrial demand.
About half of total silver production is consumed for industrial uses such as electricity, electronics, and solar power, and demand is skyrocketing as it is an essential material in secondary batteries and solar panels, a situation in which supply cannot keep up.
Copper is considered the biggest beneficiary commodity of the AI boom. Most power supply paths for AI data centers—mainboards, GPUs, and storage—are made of copper, and large amounts of copper are also used in cooling equipment that addresses heat generation.
Experts expect the strength in gold, silver, and copper to likely continue through the first half of next year. Global liquidity expansion, a weaker dollar, and geopolitical risks are acting in combination, while industrial demand remains solid. Global investment bank UBS analyzed that gold could rise to as high as $4,900 per ounce in the first half of next year.
Silver and copper prices are also expected to show a supportive trend. UBS and Bank of America (BoA) said silver could rise into the $60-per-ounce range based on structural supply shortages and expanding demand in the Indian market. Copper is also seeing inventories fall rapidly due to increased AI infrastructure investment and production disruptions in major producing regions, leading to continued upward pressure, according to analyses.
However, some also said investors should beware of sharp price swings due to supply fluctuations, a characteristic of commodities. A steel analyst at a securities firm said, "Major commodities such as copper and silver often see increased price volatility depending on tariff adjustments or changes in supply chains," adding, "In fact, when refined copper was excluded from tariffs in July, copper prices plunged more than 20% in a single day."