Copper Finds Support as Tech Rout Eases
Copper futures climbed toward $6.50 per pound on Monday, snapping a two-day decline as the selloff in technology stocks driven by AI concerns lost momentum, lifting sentiment toward the metal. Copper remains a key material in the global AI expansion due to its widespread use in data centers, power grids, and electrical infrastructure, making prices particularly sensitive to shifts in technology sector sentiment. Broader market sentiment also improved as oil prices declined following reports that President Donald Trump intends to allow more time for diplomatic efforts before deciding whether to resume military strikes against Iran. Previously, elevated oil prices weighed on copper demand expectations amid concerns over potential central bank rate hikes and weaker global economic growth. On the supply side, production from top copper producer Chile fell to its lowest level in at least two decades in the third quarter, with the country anticipating only a modest recovery next year.
Copper futures climbed toward $6.50 per pound on Monday, snapping a two-day decline as the selloff in technology stocks driven by AI concerns lost momentum, lifting sentiment toward the metal. Copper remains a key material in the global AI expansion due to its widespread use in data centers, power grids, and electrical infrastructure, making prices particularly sensitive to shifts in technology sector sentiment. Broader market sentiment also improved as oil prices declined following reports that President Donald Trump intends to allow more time for diplomatic efforts before deciding whether to resume military strikes against Iran.
Previously, elevated oil prices weighed on copper demand expectations amid concerns over potential central bank rate hikes and weaker global economic growth. On the supply side, production from top copper producer Chile fell to its lowest level in at least two decades in the third quarter, with the country anticipating only a modest recovery next year.