Copper, Gold and Silver Break Out Together: Historic Metals Rally

Daily News Nuggets | Today’s top stories for gold and silver investors
December 2nd, 2025

Copper Joins Gold and Silver at Record Highs

For the first time in decades, copper, gold and silver have all climbed to record levels together. Copper recently touched $11,295 per tonne on the London Metal Exchange, while silver reached $58.83 per ounce and gold remains above $4,100. This synchronized rally reflects tight supply and rising demand, driven largely by green energy projects and AI infrastructure investments.

Copper’s advance has been amplified by disruptions at major mines. At the same time, silver’s industrial demand—especially for solar panels and electric vehicles—has run into limited inventories in London vaults. Gold’s gains have been supported by central bank buying and safe-haven flows. Together, these trends show investors rotating into hard assets amid concerns over inflation, geopolitical risk and a softer dollar.

Central Banks Ramp Up Gold Buying Despite Record Prices

Central banks added 53 tonnes of gold to their reserves in October, a 36% rise from September, underlining steady institutional demand even with gold trading above $4,000 per ounce. Poland led purchases with 16 tonnes as it returned to the market and raised its target allocation to 30% of reserves. Brazil also bought 16 tonnes, its first acquisition since 2021.

Year-to-date, central banks have acquired 254 tonnes. While that pace is slower than some recent years, it remains well above historical averages. The World Gold Council characterizes the buying as strategic rather than opportunistic: most surveyed central banks expect their gold reserves to grow in the year ahead. That continued accumulation reinforces gold’s role as a hedge against currency depreciation and geopolitical uncertainty, factors that are also complicating monetary policy decisions.

Euro Holds Steady as Mixed PMI Data Keeps Dollar Under Pressure

The euro steadied near two-week highs as traders weighed mixed economic signals from both sides of the Atlantic. U.S. manufacturing contracted for the ninth consecutive month in November, with the ISM Manufacturing PMI at 48.2, its lowest in four months. Markets have shifted to price in a high probability of a Federal Reserve rate cut at the December 9-10 meeting.

Across the Eurozone, services activity remains firm but manufacturing slipped back into contraction with a PMI reading of 49.7. The dollar index fell to two-week lows near 99.01, providing support to gold, which briefly approached $4,260. Persistent weakness in manufacturing is central to the Fed’s rate decision and continues to shape currency and precious-metals markets.

Fed Officials Divided Over December Rate Cut

Federal Reserve policymakers remain split ahead of their final 2025 meeting. Minutes from October revealed “strongly differing views” on whether to cut rates in December, with some officials suggesting that no further reductions may be necessary before year-end. The debate reflects competing risks: a cooling labor market versus persistent inflationary pressures.

Market expectations have swung widely: from near-certainty of a December cut a month ago to much lower odds more recently, before rising again. A recent government shutdown also disrupted key economic releases, complicating the data picture that policymakers must use. The Fed meets December 9-10, and Chair Jerome Powell has emphasized that no outcome is predetermined.

Trump’s Approval on Inflation Collapses to Biden-Level Lows

Recent polls indicate President Trump’s approval for handling inflation has tumbled to about -28 percentage points, matching low ratings seen by President Biden during the 2022-2023 inflation spike. A majority of voters now attribute current economic challenges more to Trump than to Biden, and many describe the economy negatively.

The political shift is notable given Trump’s 2024 campaign promises to improve affordability. Tariff and trade policies are cited by some analysts and consumer brands as contributing factors that have tightened household budgets. With a large share of voters disapproving of his handling of inflation, the administration faces mounting pressure to address cost-of-living concerns.