Silver Breaks $80 Barrier
Silver prices soared 161% in 2025, breaching the $80 per ounce mark for the first time in history. Its rally was fueled by its designation as a critical mineral in the U.S., chronic supply constraints, and critically low inventory levels.
Gold
also shined, climbing 66% to hit record highs, driven by sustained central bank buying and investors seeking safe havens amidst economic and geopolitical risks.
"Demand for metals is looking solid from both an industrial and retail perspective," said Tim Waterer, chief market analyst at KCM Trade. He noted that the fundamental drivers—central bank demand and positioning ahead of expected U.S. rate cuts in 2026—remain intact.
Industrial Metals Surge on AI Demand Copper
hit an all-time high of $12,960 per tonne on the London Metal Exchange this week, marking a nearly 44% gain for the year. The rally was underpinned by a weaker U.S. dollar, supply disruptions, and booming demand from the artificial intelligence and renewable energy sectors. Aluminum also rose 17%, supported by China’s cap on smelting capacity.
Energy and Softs Struggle
In stark contrast, energy markets faced a challenging year. Brent crude and WTI fell approximately 15%, with Brent heading for its longest-ever streak of annual losses. Despite geopolitical tensions involving Russia and Venezuela, rising global supplies weighed heavily on prices.
OPEC+ has responded by pausing planned output increases for the first quarter of 2026. "If the price really has a substantial fall, I would imagine you will see some cuts," said Martijn Rats, Morgan Stanley’s global oil strategist.
2026 Outlook Looking ahead, analysts suggest that while precious metals have room for further gains as interest rates fall, agricultural products (softs) like cocoa and sugar, along with energy, offer limited upside potential due to growing supplies and tepid demand.