Copper prices faced significant pressure this week, nearing a fifth consecutive weekly loss, the longest losing streak in nearly two years. The downturn was driven by turmoil in the artificial-intelligence sector and rising expectations of further US interest rate hikes. Benchmark three-month copper futures on the London Metal Exchange dipped below $13,500 a ton, heading for the lowest close since mid-July. The metal, which hit a record high in September, has lost around 2% this week alone.
The decline in copper comes amid broader unease in commodity markets, with investors reacting to shifting economic and industrial demand forecasts. The AI industry's volatility has added to uncertainty, as copper is a key component in many tech applications. Meanwhile, the prospect of higher interest rates continues to weigh on industrial metals, as tighter monetary policy typically reduces demand for raw materials.