Gold vs Copper: While gold's rally has been making headlines so far this year, copper is quietly beating all records behind the picture. The red metal has outpaced gold so far in 2025, in terms of returns.
On year-to-date basis, Copper prices on Comex have surged by over 27% since the beginning of this year.
Earlier this week, the metal surpassed the psychological threshold of $10,000 a ton as Trump's push for tariffs on industrial metals continued to weigh heavily on investor sentiment. On Thursday, copper prices surged by over 0.5% to $10,040 a ton on the London Metal Exchange. This was the highest level recorded since October last year, as per Bloomberg.
"Comex copper advanced more than 0.5% in the previous session, reaching a multi-month high as prices settled above $5 per pound. The rally was fueled by strong Chinese economic data, coupled with Beijing’s commitment to boosting domestic consumption. Authorities have introduced a spending plan aimed at increasing household incomes to counter prolonged deflation and a struggling property sector," Axis Securities said in a note.
Usually, any significant surge in the red metal's price is viewed as a positive indicator since copper is used across multiple sectors, including cables and wires, automobiles and consumer durables. However, the current rally in copper is largely driven by Trump's tariff stance and powering the US's industrial growth.
Copper tariffs in sight?
The Trump administration has already levied a straight 25% tariff on steel and aluminum imports as part of a broader plan to implement 'reciprocal' tariffs. From next month, these tariffs will be imposed on other goods and services as well.
Estimates suggest that a tariff on the red metal might also be in hindsight. Exactly when and at what rate remains a question. This uncertainty surrounding tariff plans is also making investors jittery.
As per reports, the US administration has also started an investigation into copper imports. Major financial institutions, including Goldman Sachs and Citigroup Inc., are now expecting a similar 25% tariff rate on copper imports by the end of 2025.
What about Gold's rally?
While copper silently continues its upward trajectory, Gold continues to remain in the limelight. Earlier this week, Gold crossed the psychological threshold of Rs 90,000 mark. So far this year, the yellow metal has surged over 15% with commodity analysts expecting more upside ahead.
Geopolitical uncertainty owing to potential trade wars, due to Trump's tariff play, coupled with major central banks buying gold has pushed the metal's price sky-high.
