- BIST10011,722-2.89%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,181.10+0.26%
- INTEREST37.00%-1.00
- BITCOIN81,789+0.50%
- October 18, 202611°
- BIST10011,722-2.89%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,181.10+0.26%
- INTEREST37.00%-1.00
- BITCOIN81,789+0.50%
- October 18, 202611°
Copper hits record high, outpacing gold on AI demand
In the first half of the year, copper prices rose 9.8% to $6.09 and hit an all-time high of $6.67 on June 2. AI data centers, electric vehicle production, and supply issues supported prices.
In international markets, copper outpaced gold in returns for investors in the first half of the year. Intense demand from AI data centers, rising electric vehicle production, and global supply issues pushed prices to a historic peak.
The price of copper per pound rose 9.8% in the first six months to $6.09. Prices hit an all-time high of $6.67 on June 2. Thus, copper outpaced gold's gains over the same period, becoming one of the most notable commodities in the market.
AI Demand Drives Record
The biggest factor in the rise of copper prices was the rapidly increasing data center projects worldwide as part of AI investments. The growth of electric vehicle production and the acceleration of renewable energy investments also supported global demand for copper.
On the supply side, production losses in Chile, strong Chinese imports, production issues in Indonesia, and logistical disruptions from the Strait of Hormuz accelerated the price increase.
Aluminum Also Hits 4-Year High
In the first half of the year, aluminum also performed strongly due to geopolitical risks. On the London Metal Exchange, the price per ton of aluminum rose to $3,787, its highest level in about four years. Developments in the Middle East, rising energy costs, and China's production restrictions were the main factors supporting prices.
Analyst Assessment
Capital.com Senior Financial Markets Analyst Kyle Rodda stated that the main reason for the rise in copper prices is AI investments, and that demand from data centers is creating significant tightness in the market. Rodda said that if AI investments continue, copper prices could remain strong.
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