FX.co ★ Copper Rallies to All-Time High

Copper futures experienced a significant increase of 5%, surpassing $6.2 per pound on Thursday, achieving unprecedented highs due to growing demand for tangible assets amidst geopolitical and trade uncertainties. This surge was further propelled by a sudden devaluation of the dollar, unsettling many investors. In recent events, U.S. President Donald Trump intensified tensions by warning Iran of potentially severe military actions—more drastic than the ones initiated in June—if they do not engage in a trade agreement with Washington. Moreover, Trump's continued tariff threats against various countries, alongside his seeming indifference to the weakening dollar, have encouraged more investments in metals. The copper market is being bolstered by persistent supply constraints and strong industrial demand, largely driven by the worldwide shift towards renewable energy and advancements in artificial intelligence. Concurrently, copper inventories across the key markets of Shanghai, London, and New York have increased recently, with total stockpiles now exceeding 900,000 tons.