Copper Prices Surge Amid AI Demand and Supply Disruptions
Copper prices are nearing record highs due to robust demand for the industrial metal in artificial intelligence (AI) infrastructure. The Copper futures contract, HGU6, closed at a marginal price decline after reaching an intraday high of $6.86, which represents a record-high territory.
The strong demand is driven by the rapid expansion of data center infrastructure, and supply constraints are also contributing to the upward trajectory in copper prices. Production disruptions in Chile, the world's largest producer, caused by heavy snowfall, excessive rainfall, and strong winds, have restricted market supply.
From a technical perspective, the Copper futures contract is navigating strong bullish momentum. The price is trading above its 50-day, 100-day, and 200-day Simple Moving Averages (SMAs), confirming the primary bullish trend remains predominant. However, the Relative Strength Index (RSI) is approaching overbought territory, signalling caution for long positions.