Tin joins rate race with gold, silver and copper – all hit modern highs – Firstpost

Tin joins rate race with gold, silver and copper – all hit modern highs – Firstpost

Metal markets around the world are in rare territory, with gold, silver, copper and tin all hitting fresh record highs as investors scramble for safety amid mounting geopolitical tensions and economic uncertainty.

The synchronised rally, seen this week across precious and industrial metals, shows a powerful flight to hard assets that analysts say is unprecedented in recent memory. “There is no precedent that I can remember in 20 years” for all four to peak at the same time, a commodities analyst told the Financial Times.

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Safe havens and base metals surge

Gold, traditionally viewed as a hedge against crisis, has been buoyed by fears of conflict and doubts over the independence of the US Federal Reserve following a high‑profile investigation into the Federal Reserve chair.

The Trump administration recently opened a criminal investigation into Powell over cost overruns for a $2.5 billion project to renovate two historical buildings at its headquarters complex. Powell, who disclosed the probe on Sunday, denies wrongdoing, and remarked the unprecedented actions are a pretext to put pressure on Powell for not satisfying Trump’s long-running demands for sharply lower interest rates.

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Silver has also blasted to record levels, supported by both safe‑haven demand and strong industrial use.

What makes the current rally striking is the surge in base metals such as copper and tin, which are typically driven by supply and demand fundamentals rather than geopolitical fear. Both climbed to historic highs this week, a sign that investors are broadening their bets on hard assets.

Tin, in particular, has joined the value race, a rare move for a metal more often tied to manufacturing than bazaar panic, underscoring the broad sweep of the commodities rally.

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What’s driving the rally

Investors point first to rising geopolitical risks as a major driver of the metals rally. Fears over possible US military action in the Middle East, especially around Iran, and instability after turmoil in Venezuela have lifted risk premiums across global markets. That uncertainty has pushed traders and funds into hard assets seen as safer stores of value.

Another key factor is uncertainty around US monetary policy. The Justice Department’s investigation into the Federal Reserve chair has raised doubts about the central bank’s independence. As a result, investors seeking protection against currency and policy risks have turned toward metals like gold and silver.

At the same time, stockpiling and speculative buying have added fuel to rate gains. Traders and physical buyers in markets such as the US and China are building inventories of key metals amid concerns about future supply shortages and tightening industry conditions.

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This combination of physical demand and financial speculation has helped push not just traditional safe havens but also industrial metals like copper and tin to innovative highs.

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