Gold, Silver, Copper, Aluminium Prices Trade Higher: What’s fueling rally across metal markets

Precious metals and industrial metals continued to rise for the second straight session on Tuesday, supported by firm demand and supply concerns. Gold prices edged higher and traded near a one-week high. In the previous session, gold had climbed nearly 3 per cent and moved close to record levels.

Gold, Silver and Dollar Trends

Prices surged by around $120 an ounce and are now holding near $4,460–4,470 an ounce. This remains about $120 below the lifetime high recorded in December last year.

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The US dollar stayed steady just below the two-week high near the 98 level. Market sentiment remained cautious amid concerns related to US military action in eastern Venezuela.

Silver prices rose to nearly $79 an ounce. The metal is around $3–4 away from its previous year’s high of about $82.67. Silver marked its third consecutive session of gains and continued to move closer to record levels.

Copper Hits Record Highs on Supply Concerns

Copper prices edged higher on Tuesday. Prices moved above $13,000 a tonne and hit fresh record highs. During morning trade, copper touched a lifetime high above $13,300 a tonne. The rise was driven by expectations of a tighter global supply during the year.

Traders remain concerned that the Trump administration could introduce new tariffs on refined metals. Such measures could divert shipments to the US and tighten supply in major trading hubs such as London and Shanghai.

Copper prices were also supported by strong global demand from power grid upgrades, renewable energy projects and data centre expansion.

Aluminium and Zinc Supported by Tight Supply

Aluminium futures in the UK rose above $3,100 a tonne. This marked the highest level in four years. Gains were supported by signs of tightening supply.

Zinc prices on the London Metal Exchange climbed above $3,200 a tonne, the highest level since January 2023. Zinc prices were supported by falling inventories and supply disruptions.

LME zinc inventories declined to 1,06,325 tonnes as of January 2. Zinc inventories on the Shanghai Futures Exchange fell by around 44.5 per cent.

Metal Stocks Gain; Oil Prices Ease

Rising prices of silver, copper and aluminium have led to strong buying interest in metal stocks.

Aluminium is trading at a more than three-year high. Higher metal prices have improved realisations and earnings visibility. As a result, shares of NALCO and Hindustan Aeronautics Ltd (HAL) saw strong buying interest. Both stocks were trading at all-time highs.

Copper prices on the London Metal Exchange crossed $3,000 per tonne for the first time, touching record levels. Supply conditions remain tight as trade and tariff uncertainty has led several traders to hold inventories.

The dollar index has declined around 11 per cent from its yearly high, adding support to copper prices. Hindustan Copper shares touched a 15-year high, rising about 5 per cent in a week.

Silver prices also remained strong, trading above $76 an ounce. Demand has increased across solar panels, electronics, semiconductors, robotics and EV components. Inventories are at multi-year lows in several locations, including Shanghai. Silver’s classification as a critical mineral by the US Geological Survey has also supported demand.

Oil prices, however, pared gains from the previous session. Traders assessed the possibility of higher Venezuelan crude output following the US capture of President Nicolas Maduro. Expectations of ample global supply and weak demand weighed on prices. Brent crude traded just below $61.5 a barrel.