Silver Soars to Record Highs Driven by Gold's Rally, Liquidity Squeeze — Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 1.4% to $63.59 a barrel

--European benchmark gas is down 2.1% to 31.49 euros a megawatt-hour

--Gold futures are up 2.9% to $4,116.50 a troy ounce

--LME three-month copper futures are up 2.9% to $10,824.50 a metric ton

TOP STORY:

Silver Soars to Record Highs Driven by Gold's Rally, Liquidity Squeeze

Silver prices rose to record highs Monday, driven by gold's historic rally as investors rush to safe havens, and a massive liquidity squeeze in the London market.

In afternoon European trade, silver futures in New York climbed 6.6% to $50.34 a troy ounce, while spot prices surpassed the $50 mark for the first time in more than four decades, rising 3.3% to $51.95 an ounce.

"Silver and gold prices are typically intertwined because their main driver--private investment flows, whether through [exchange-traded funds] or speculative positioning--move in tandem," analysts at Goldman Sachs said.

OTHER STORIES:

OPEC Sticks to Oil Demand Forecast But Flags Fiscal Concerns, Lingering Trade Uncertainty

The Organization of the Petroleum Exporting Countries left its oil-demand forecasts steady as it works to revive more production, but pointed to fiscal concerns and persistent trade uncertainties.

The Vienna-based cartel expects global oil demand to grow by 1.3 million barrels a day this year and 1.38 million barrels a day the next, as robust economic activity boosts transportation fuels.

--

Trump Wants More Natural-Gas Exports and Lower Energy Prices. It's Going to Be Tricky.

The U.S. is set to roughly double exports of natural gas in the next five years. Prices and volatility are poised to rise, too.

With the Trump administration's support, developers are forging ahead with plans to build a flurry of new terminals that liquefy and ship natural gas. President Trump has made LNG exports a cornerstone of his trade policies by tying deals to commitments to buy more U.S. energy.

--

Chile's Codelco Invests in Billionaire Friedland's Pulsed-Power Tech Firm

Chilean state copper giant Codelco has become a strategic investor and development partner in I-Pulse, a closely held company co-founded and led by mining billionaire Robert Friedland that uses bursts of electricity to break rocks.

Sweden's Stegra to Enter New Financing Round For Green-Steel Project

Stegra said it is entering a new financing round for the construction for the green-steel plant in Sweden, comprising a mix of new equity debt, outsourcing and strategic partnerships.

The Swedish company on Monday said that despite strong initial commitments from existing investors, the proceeds from the round are expected to represent around 15% of total project funding.

MARKET TALKS:

Gold Scales New Peaks on Trade Tensions, Rate-Cut Hopes -- Market Talk

1439 GMT - Gold prices hit a fresh record, surpassing $4,100 a troy ounce as a flare-up in U.S.-China trade tensions and prospects of further U.S. interest-rate cuts drive up demand. In afternoon trading, futures in New York climb 2.9% to $4,116.20 a troy ounce, while spot gold rises 1% to $4,016.68 an ounce. Bank of America raised its gold price forecast to $4,400 an ounce on average for 2026, while Societe Generale analysts say they now see prices reaching $5,000 an ounce by the end of next year. (giulia.petroni@wsj.com)

--

China Monthly Soybean Imports a Near-Record -- Market Talk

0949 ET - The amount of soybeans imported by China in September was a record-high for the month, and the second-highest monthly amount ever recorded - and none of it came from the U.S. The country's preliminary trade data shows that it imported 12.87 million metric tons of soybeans in the month, up from 12.28 MMT last month. The current all-time high is 13.92 MMT in May 2025. Indications of China fulfilling its needs elsewhere could be troubling for U.S. grain traders -- although analysts this morning appear relieved about the Trump Administration's softening on its policy stance against China over the weekend. "A much more moderate tone has been seen this morning," says Randy Mittelstaedt of RJO Futures in a note, referencing comments from Treasury Secretary Scott Bessent. (kirk.maltais@wsj.com)

--

Oil Futures Recover But Off Earlier Highs -- Market Talk

0910 ET - Oil futures are recovering some of Friday's losses after President Trump followed his threat of hefty tariffs on China with a conciliatory note over the weekend, but are off earlier highs. Concerns of coming oversupply are keeping a lid on the rebound. In its monthly outlook, OPEC held its oil demand growth estimates at 1.3 million barrels a day for this year and 1.38 million b/d for 2026, but said the threat of the U.S. reimposing 100% tariffs on China "has once again underscored the lingering uncertainty surrounding trade policy." WTI is up 0.9% at $59.42 a barrel, and Brent is up 0.8% at $63.25 a barrel. (anthony.harrup@wsj.com)

--

Copper Gains 2% After Trump's Softer Tone on China -- Market Talk

0825 GMT - Copper prices rise 2% in early trade after President Trump's conciliatory words about China in a social media post Sunday, with futures now at $10,590 a metric ton. "Copper tumbled 5% on Friday following Trump's tariff threat, only to bounce back in Asia amid a softer tone from both sides," analysts at Saxo Bank say. Price gains are mainly driven by fears of tighter global supply, with recent disruptions at major mines in Indonesia and Chile dampening growth prospects. Meanwhile, the annual LME Week kicked off in London on Monday. Industry experts are expected to focus on bullish factors, from mine disruptions to long-term demand growth trends, according to the analysts. (giulia.petroni@wsj.com)

--

Silver's Liquidity Squeeze Expected to Be Temporary, Goldman Says -- Market Talk

0806 GMT - Silver's liquidity squeeze has amplified the metal's rally but is expected to be short-lived, according to Goldman Sachs. Inventories in London--the global trading hub for physical silver--dropped earlier this year as concerns over potential U.S. tariffs prompted traders to move their holdings to the U.S. Meanwhile, rising demand for silver-backed ETFs absorbed more physical silver, further tightening supply. "This imbalance should eventually normalize as higher London prices now incentivize metal to flow back from the U.S. and other regions, gradually restoring liquidity," analysts at the U.S. bank say. "Without a central bank bid to anchor silver prices, even a temporary pullback in investment flows could trigger a disproportionate correction, as it would also unwind the London tightness that drove much of the recent rally." (giulia.petroni@wsj.com)

--

Silver Soars to New High Amid Gold Rally, Liquidity Squeeze -- Market Talk

0805 GMT - Silver prices climb 5% in early trade, setting a record high as a rally in gold and a liquidity squeeze boost sentiment. Futures in New York trade at $49.63 an ounce, while spot gold is up 2.7% to $51.66. "The most likely path for silver prices in the medium term is to rise further since silver benefits from the same private investment flows lifting gold amid Fed cuts," Goldman Sachs analysts say. "However, in the near term, we see greater volatility and downside risk than for gold, reflecting silver's smaller and less liquid market." Silver lease rates--the cost of borrowing physical silver--rose over 35%, according to market watchers. Investors are paying record premiums to secure immediate access to the metal, highlighting the scarcity of available bars in London vaults due to rising speculative demand. Meanwhile, platinum futures gain 3.3% to $1,676.90 an ounce. (giulia.petroni@wsj.com)

--

China's Recent Trade Moves a Bit of a Gamble, Could Backfire -- Market Talk

0700 GMT - China's recent trade moves are a bit of a gamble that risk backfiring, economists at Capital Economics write in a note. Beijing said it would impose sweeping new export restrictions on rare earths, related processing equipment, and downstream products including magnets and semiconductor and battery inputs. China's leadership might feel that it is a risk they can afford to take, the economists say. China controls around 90% of the world's rare-earth production, giving it significant leverage, but that doesn't mean it holds the trump card. "The global scope of China's rare-earth controls means that, if used aggressively, they would do a lot of collateral damage to relations with other trading partners," they say. (amanda.lee@wsj.com)

--

Iron Ore Falls; Tight Inventories, Rising Steel Prices May Support -- Market Talk

0341 GMT - Iron ore falls, flitting between gains and losses in a tight range. Rising steel prices and tightening port inventories should provide support for iron ore, while China's property market stabilizes and home sales pick up, the ANZ Research team writes in a note. However, steel and iron ore demand won't see significant growth unless new construction activity rises, they write. China's steel industry will likely be relatively immune to ongoing U.S. tariff tensions, with trade to other markets like Europe and Asia picking up the slack, they add. The most traded iron ore contract on the Dalian Commodity Exchange falls 0.1% to 794.5 yuan a ton. (kimberley.kao@wsj.com)

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

October 13, 2025 11:42 ET (15:42 GMT)