The increase in the futures price of copper to $6.50 per pound on Monday is a sign of a return to an upward trend after two days of decline. This price change comes as stock sales in the technology sector have halted due to concerns related to artificial intelligence, improving sentiment towards copper.
The Role of Copper in AI Development
Copper is recognized as a key material in the global expansion of artificial intelligence, due to its widespread use in data centers, power grids, and electrical infrastructure. This dependency causes copper prices to react strongly to changes in sentiment in the technology sector.
The Impact of Oil Prices on the Copper Market
Public sentiment in the market has also improved, as oil prices have decreased following reports that President Donald Trump intends to allocate more time for diplomatic efforts before deciding on resuming military attacks against Iran. Previously, rising oil prices had reduced demand expectations for copper due to concerns over increasing interest rates from central banks and weak global economic growth.
On the other hand, copper production from the largest producer of this metal, Chile, has fallen to its lowest level in at least two decades in the third quarter. The country only expects a slight recovery next year. These factors, especially in the current economic conditions, could have a significant impact on the copper market.
