Gold and copper prices continue to attract attention from investors despite recent volatility. Central bank buying and infrastructure demand are key factors supporting these commodities. Gold prices hit a record high of nearly $5,600 per ounce in January 2026 but have since dropped 26%. However, analysts at JPMorgan Chase predict gold could climb to $6,300 per ounce by 2027, driven by rising fiscal deficits and geopolitical tensions. Central banks, particularly in Asia, Eastern Europe, and the Middle East, have been accumulating gold reserves, with purchases doubling since 2022.
Copper prices are also on the rise due to strong demand from infrastructure projects, including data centers, power grid upgrades, and renewable energy initiatives. The World Bank forecasts an 18% increase in copper prices in 2027, citing multi-year supply deficits. Freeport-McMoRan (NYSE: FCX), one of the world's largest copper producers, is expanding production with a focus on brownfield projects that lower capital intensity and enable faster production. The company expects copper sales volumes to grow 20% in 2027 and another 10% in 2028.
Newmont (NYSE: NEM), the world's largest gold producer, is benefiting from elevated gold prices. The company realized an average sale price of $4,546 per ounce of gold, a 29% increase from the previous year. Newmont's all-in sustaining costs are projected at $1,520 per ounce, leaving substantial margins. CEO Natascha Viljoen highlighted the company's strong free cash flow and record earnings, with plans to produce 6 million ounces of gold per year in the long term.
Franco-Nevada (NYSE: FNV) offers exposure to precious metals without the operational risks of traditional mining. The company provides upfront funding to mining companies in exchange for royalties and streams, insulating it from operating cost inflation. Franco-Nevada's adjusted EBITDA margin was 91% in the first half of the year, demonstrating strong upside from rising precious metal prices.