Gold and copper reached record highs, while silver approaches its highest level in 12 years, as the metals rally continues

The record highs for gold, silver, and copper are providing key insights into the current state of the economy. These price surges often indicate growing investor concern over inflation, economic stability, and a shift towards safe-haven assets and essential industrial commodities.

Gold futures traded just above $2,450 per ounce during early morning trading, surpassing previous highs set in April before pulling back slightly. Silver also saw a significant rise, reaching over $32 per ounce on Monday, its highest level since late 2012.

Gold's recent rally has been driven by expectations of a Federal Reserve rate cut this year and strong demand from central banks and Asian buyers. Silver has outpaced gold recently, with a 35% increase this year compared to gold's 18% rise.

Copper prices hit new highs on Monday, with analysts suggesting that a short squeeze has driven the recent surge. Despite this, according to Michael Widmer, the global head of metals research at Bank of America, strong demand fundamentals are anticipated to persist over the next year.

"I believe the structural bull case for the copper market is still intact," Widmer told Yahoo Finance on Monday. "This is a buy-the-dip market."

Widmer and his team project that copper, essential for applications ranging from electrical wiring to machinery, will average $12,000 per ton by 2025, representing a 20% increase from current levels.

"Copper's fundamentals look very strong over the next two years," he added.