Gold Holds $3,300 but Faces Stiff Competition as Copper and Silver Steal the Spotlight
Saturday, September 27th 2025
Gold prices have reclaimed their footing above the psychologically critical $3,300 level going into the weekend, buoyed by its role as a safe-haven amid lingering geopolitical and economic risks. Yet analysts warn that its upside may be capped for now as investor attention shifts to other red-hot commodities.
Spot gold closed Friday near $3,350.89 per ounce, up nearly 1% on the day and about 0.5% higher on the week. The rebound came after President Donald Trump surprised markets yet again by escalating his global trade war with a dramatic new move: slapping a 50% tariff on imported copper.
Copper Surges to Center Stage
The shock copper tariff sparked a historic rally in the red metal. On Tuesday, Comex copper futures posted their largest single-day gain ever, soaring roughly 13% as U.S. warehouses filled to the brim with stockpiled copper ahead of the August 1 tariff implementation. The rush to hoard supplies has driven New York copper futures to trade at a record premium over the London Metal Exchange, creating a liquidity squeeze that is intensifying price pressures.
Analysts caution that while copper’s meteoric rise has overshadowed gold, the inflationary impact of skyrocketing industrial metals could ultimately support bullion prices over the longer term.
“Gold is like the mega-banks during the financial crisis—‘too big to fail,’” said Robert Minter, Director of ETF Strategy at abrdn. “It remains foundational to the monetary system and largely exempt from tariffs, unlike copper or potentially silver. But with industrial metals catching a cyclical tailwind, it’s natural for investor focus to broaden.”
Commodities Take the Baton
Some analysts suggest gold’s role as the sole bright spot in commodities is fading as copper and silver grab the baton.
“The key risks that were fueling gold demand are beginning to dissipate,” noted Callum Thomas of Topdown Charts. “Growth fears are balancing out, tariff threats feel routine, and geopolitics have calmed somewhat. This opens the door for the broader commodities complex to shine.”
Philip Streible, Chief Market Strategist at Blue Line Futures, echoed this sentiment, pointing to the growing rotation into other commodities. He revealed that he recently sold part of his gold position after buying at a dip near $3,244 earlier this month.
Silver, in particular, has gained favor among investors looking for value. Spot silver surged nearly 4% this week, closing at $38.38 an ounce on Friday. Analysts highlight silver’s appeal as it plays catch-up not only to gold but also to platinum.
Macro Headwinds Keep Gold in Check
At the same time, broader macroeconomic data appears to be tempering gold’s near-term potential. With the Federal Reserve expected to maintain its neutral monetary policy stance amid persistent inflation risks, many analysts now see gold prices consolidating rather than breaking out.
Market participants are closely watching next week’s Consumer Price Index (CPI) reading for June, which could influence the Fed’s posture.
“CPI is the key obstacle preventing Trump from ramping up pressure on the Fed,” said Aaron Hill of FP Markets. “We expect inflation data to hold up better than anticipated, which would keep the dollar stable and leave gold moving sideways for now.”
Ole Hansen, Head of Commodity Strategy at Saxo Bank, sees a similar pattern.
“Gold remains well-supported but lacks a clear catalyst to retest its April high of $3,500,” Hansen noted. “Short-term selling pressure is building as institutional investors pare back ahead of summer, but longer-term risks—like inflation and Trump’s push for rate cuts—remain bullish for gold. It’s a question of when, not if, we see another rally.”
Conclusion: A Market in Flux
While gold has demonstrated resilience, holding above $3,300, its leadership role in the commodities space is being challenged. With copper and silver staging powerful rallies and broader risk sentiment improving, gold may continue to trade in a narrow range over the coming weeks.
For now, the yellow metal remains a solid safe-haven, but its next big move may depend on whether inflation, geopolitics, and central bank policy can combine to reignite the bullish momentum that took it to record highs earlier this year.
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