Commodities Super-Cycle: Gold Smashes $4,700; Copper Squeeze Rattles LME

LONDON – Global commodities markets are signaling acute distress in the geopolitical landscape, with Spot Gold (XAU/USD) surging past $4,730 per ounce on Tuesday. The precious metal is benefiting from a “perfect storm” of trade war anxiety, sticky global inflation, and a structural diversification away from the US Dollar by central banks.

Safe-Haven Dominance

The rally in bullion is being described by analysts not merely as a trade, but as an insurance policy. With the US threatening tariffs on NATO allies and political uncertainty clouding the Federal Reserve's path, institutional capital is seeking assets free from sovereign credit risk.

“The break above $4,700 confirms that the risk premium for 'uncertainty' is being repriced,” notes a commodities desk head. “We are seeing defensive positioning against both currency debasement and trade fragmentation.”

The Great Copper Squeeze

While Gold captures the headlines, a more violent dislocation is occurring in industrial metals. The London Metal Exchange (LME) Copper market is facing a historic squeeze. The spread between the expiring January contract and the next month spiked by $64, the largest single-day move since records began in 1998.

Data Snapshot

• Three entities control over 30% of long positions for January delivery.
• Long positions exceed available warrants by 160,000 tonnes in LME warehouses.
• Structural deficit likely to persist through 2028, driven by AI power demand.

Technicals

• Key Resistance: Monitor the $4,737 level in Gold.
• Momentum: RSI near 74 suggests the market is overextended.