Gold, Copper, and the Dollar Collapse – What’s Next for the Markets?

The record commodity rally gained new momentum as gold, copper, and silver reached historic highs amid a weaker dollar and rising geopolitical tensions.

Gold rose 2.7% to $5,564 per ounce, bringing its monthly gain to around 29%. Silver extended its year-to-date rise to 66%, after jumping 148% in 2025. Copper climbed up to 7.9% on the London Metal Exchange, while Brent crude reached its highest level since September. All of these assets are dollar-denominated and benefited from the greenback’s weakness. The Australian dollar — often seen as a commodities proxy — rose for the ninth consecutive day, marking its longest streak of gains in over a decade.

Government bonds fell amid concerns that rising commodity prices would intensify inflationary pressures. Market tension was further fueled by President Donald Trump’s warning to Iran to strike a nuclear deal with the U.S. or face military strikes more severe than the attack he ordered last June. The MSCI Asian stock index rose, along with futures on U.S. and European equities, after reports from mega-cap companies like Tesla and Meta Platforms broadly exceeded expectations.

“Global markets are trading with a pronounced lack of conviction,” said Hebe Chen, an analyst at Vantage Markets. “Rising geopolitical tensions around Iran and the volatile U.S. dollar amplify the sense that macroeconomic risks remain unresolved, keeping investors in a cautious wait-and-see mode.”

With mixed signals from tech company earnings and heightened scrutiny over AI spending, markets are favoring selective positioning over taking aggressive risks until clearer indications emerge. Volatility in bond and currency markets has increased amid uncertainty fueled by Trump’s threats to European allies regarding Greenland and his administration’s attacks on the independence of the Federal Reserve.

All of these risk factors have strengthened demand for safe-haven assets such as gold.

What Bloomberg Strategists Say:

The nearly 30% monthly gain in gold and the impressive 60%+ surge in silver bring the two precious metals close to some of their steepest rallies in history. The relentless momentum is causing traders to worry that these seemingly unsustainable gains could end in sharp and prolonged corrections.
— Garfield Reynolds, Head of MLIV Team