Copper Rally Fueled by Speculative Capital, Analysts Warn

Copper prices have reached $6.19 per pound, an increase of 8.35% year-to-date, but analysts at StoneX warn that the rally may be driven more by speculative capital than actual demand.

According to Natalie Scott-Gray, senior metals analyst at StoneX, AI and data center demand accounts for less than 2% of copper consumption, creating a gap between market enthusiasm and physical demand.

The high correlation between copper prices and U.S. technology stocks makes the metal particularly vulnerable to shifts in sentiment within the tech sector.