Copper Hovers Near Record Highs Amid AI Demand and Supply Disruptions

Copper futures have been trading near record highs due to strong demand from the artificial intelligence (AI) infrastructure sector, according to Equiti.com. The copper futures contract (HGU6) closed the session with a marginal price decline after reaching an intraday high of $6.86 per unit. This level represents record-high territory for copper prices.

The surge in demand is largely attributed to the rapid expansion of data center infrastructure, which requires significant amounts of copper for its construction and operation. Additionally, supply constraints have contributed to the upward momentum in copper prices. Chile, the world's largest copper producer, has been experiencing production disruptions due to heavy snowfall, excessive rainfall, and strong winds.

The technical analysis of the copper futures contract suggests that it is navigating strong bullish momentum. The price is trading above its 50-day, 100-day, and 200-day Simple Moving Averages (SMAs), indicating a robust upward trend. If the short-term resistance at $6.72 is broken to the upside, the next prominent technical ceiling sits at the $7.00 level.