Gold, Silver and Copper Hit Records as Inflation Fears Resurface – Asia Market Wrap
The surge across commodity markets showed little sign of slowing, with gold, silver and copper all pushing to fresh records as a sliding dollar and escalating geopolitical risks sent investors hunting for hard-asset protection.
Gold jumped 2.4% to around $5,550 an ounce, extending its monthly advance to roughly 28%. Silver continued an extraordinary run, taking its gains for the year to about 65% after more than doubling in 2025. Copper rallied 5% in London trading, while Brent crude climbed to its highest level since September. The move was amplified by the weaker dollar, which tends to lift prices for raw materials priced in the US currency. Reflecting the strength in commodities, the Australian dollar rose for a ninth straight session — its longest winning streak in nearly a decade.
The rally came at a cost for bonds. Treasuries fell as investors worried that soaring input prices could rekindle inflation pressures just as central banks try to loosen policy. Political risks added fuel to the shift out of fixed income after President Donald Trump warned Iran it must strike a nuclear agreement with Washington or face military action far more severe than last year’s US strike.
Equities were more resilient. Asian stocks edged up 0.3%, while futures for US and European indexes pointed higher, helped by earnings from heavyweight technology names including Tesla, Microsoft and Meta Platforms.
Still, the broader tone across markets remains cautious. With big tech results offering uneven signals and debate growing over whether massive AI investment will deliver sufficient returns, investors are becoming more selective rather than leaning aggressively into risk. Volatility in bond and currency markets has picked up as uncertainty deepens, driven by Trump’s confrontations with European allies over Greenland and renewed pressure from his administration on the Federal Reserve’s independence.
