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Gold and Copper are riding a bullish trend fueled by geopolitics and demand

Precious and industrial metals continue to play a strategic role in the global economy. Gold serves as a benchmark for investors seeking safety and inflation protection, while copper reflects the health of the global industrial sector, particularly energy, construction, and clean technologies.

Current Economic Environment:

Gold: The price of gold has surpassed $3,800 per ounce, reaching as high as $3,897, supported by concerns over a potential US government shutdown and expectations of further interest rate cuts by the Federal Reserve. Since the start of the year, gold has gained +47%, driven by central bank purchases, growing interest in ETFs, and persistent geopolitical tensions.

Copper: The industrial metal continues its ascent on the London Metal Exchange, with a three-month contract at $10,490 per ton, fueled by supply disruptions in Indonesia and Chile and strong demand tied to energy transition and electrification.

This dynamic reflects a market highly sensitive to geopolitical factors, monetary policies, and supply constraints, while remaining supported by industrial demand and safe-haven investment flows.

Investment Recommendation:

• Gold: Viewed as a safe-haven asset, gold provides protection against inflation and economic or geopolitical uncertainties. Investors can access exposure via mining stocks, ETFs, or futures contracts.

• Copper: Offers an attractive opportunity to benefit from industrial growth and the energy transition, particularly through mining companies or industrial metals-focused funds.

• Diversification & Risk Management: Combining gold for security and copper for growth allows investors to balance return and protection within a commodities portfolio.

• Long-term Perspective: Gold should remain supported by central bank demand and geopolitical volatility, while copper benefits from a structural tailwind linked to renewable energy and electrification.