Copper futures advanced toward $6.50 per pound on Monday, ending a two-day slide as the technology stock selloff linked to AI-related concerns abated, improving sentiment toward the metal. Copper remains a critical input in the global expansion of artificial intelligence, given its extensive use in data centers, power grids, and electrical infrastructure, leaving prices highly sensitive to shifts in technology-sector outlooks.
Broader risk appetite also strengthened as oil prices retreated, following reports that President Donald Trump plans to allow more time for diplomatic efforts before deciding whether to resume military strikes against Iran. Previously, elevated oil prices had dampened expectations for copper demand amid worries that higher energy costs could prompt further central bank rate hikes and weigh on global economic growth.
On the supply side, output from Chile—the world’s leading copper producer—fell in the third quarter to its lowest level in at least two decades. The country is currently projecting only a modest recovery in production next year.
