global metal markets experienced a dramatic reversal on thursday, erasing earlier gains in gold, silver, and copper as geopolitical tensions and economic uncertainty continued to weigh on investor sentiment. The volatility extended beyond metals, impacting tech giant Microsoft and the cryptocurrency Bitcoin, signaling a broader risk-off mood [[1]]. Initial surges linked to safe-haven demand were quickly undone by profit-taking and anxieties surrounding potential military action in the Persian Gulf following hawkish rhetoric from U.S. officials.
January 29, 2026, 5:21 PMJanuary 29, 2026, 6:04 PM
Metal prices, which have been on a sustained climb in recent weeks, experienced significant volatility on Thursday, with sharp reversals in the price of gold, silver, and copper. Gains made earlier in the day quickly evaporated as a wave of selling pressure emerged in the evening.
Microsoft shares took a particularly heavy hit, falling more than 12%. The cryptocurrency Bitcoin also declined, losing approximately 5% of its value and hitting a 2026 low.
Trading on the London Metal Exchange initially saw gold reach a record high of $5,595 per fine ounce. The price had risen by over 20% since mid-January, fueled by a flight to safe-haven assets amid escalating geopolitical risks. This surge reflects investor concerns about global stability and potential disruptions to economic activity.
U.S. Foreign Minister Marco Rubio warned of a potential preemptive military strike against Iran should its leadership plan attacks on U.S. facilities. This rhetoric has heightened anxieties in financial markets about a wider conflict spreading throughout the Persian Gulf region.
Profit-taking began in the afternoon, according to market observers. Analyst Christine Romar of CMC Markets indicated that speculative investors aggressively sold off gold positions following losses on the New York Stock Exchange. The gold price quickly shed around $300, closing at $5,260.
Silver Follows Similar Pattern
Silver experienced a similar reversal. After briefly hitting a record price of $121.65 per ounce, the market saw a substantial sell-off, with the price falling to $112.14.
Silver had seen even stronger demand than gold in recent months, with prices increasing by nearly 150% in 2025.
Gold and other precious metals are often viewed as “safe havens” by investors during times of crisis. Recent geopolitical events, including the U.S. action in Venezuela, the Greenland crisis, and tensions in Iran, have contributed to investor uncertainty.
Silver is also a crucial industrial metal used in applications related to artificial intelligence, robotics, and energy. Increased demand driven by a strengthening economic outlook is also contributing to its price performance.
Copper Also Reverses After Record High
Copper also reached a record high during trading, briefly hitting $14,400 per tonne on the London Metal Exchange. This followed a surge of approximately 10% – the largest increase since 2009 – but was also followed by a significant pullback.
The price of copper has been trending upward for about six months, with the pace of gains accelerating since December. Market participants pointed to the unexpectedly strong performance of the U.S. economy. Recent economic data suggests continued robustness in the U.S., which is expected to drive increased consumption of industrial metals.
Furthermore, demand for copper is anticipated to grow due to the expansion of data centers and alternative energy infrastructure. Copper is widely used in electrical engineering, construction, and mechanical engineering. (hkl/awp/sda/dpa)
