[MARKET ANALYSIS] Precious metals continue to trade at record levels with spot XAU extending beyond USD 5,000/oz

• Precious metals continue their historic bid higher, with spot gold trading beyond USD 5,000/oz and briefly extended above USD 5,100/oz, while spot silver trades just shy of USD 110/oz.
• The strength in the yellow metal has been helped by a weaker dollar, rising fiscal concerns globally, and re-emerging tariff threats. The latest threat by US President Trump is on Canada, threatening to hit the country with a 100% if they sign a trade agreement with China. However, this would be highly unlikely due the limitations under the USMCA agreement. Under the current agreement, the countries can terminate the agreement if one enters a FTA with a non-market economy like China.
• 3M LME Copper is currently trading in the middle of the USD 12.52k-13.41k/t band that has been forming since the start of 2026 as supply/demand dynamics supports the red metal. Supply disruptions were the main driver throughout 2025 but as the worries wane, demand has continued to grow due to AI demand.

Precious metals, particularly gold and silver, are experiencing unprecedented price levels, primarily driven by a weaker dollar and global fiscal concerns. The geopolitical tensions, notably the renewed trade threats from the U.S., may further amplify this demand for safe-haven assets, suggesting a potential for continued bullish sentiment in metals.