Copper Surges on AI Demand, Renewable Energy Investments
Copper prices have been hovering near record highs due to strong demand from artificial intelligence (AI) infrastructure investments and renewable energy projects. The metal has gained over 18% compared to the end of last year, with its price approaching $6.65 per pound.
The rise in copper prices is largely driven by massive AI investments in data centers, energy infrastructure, and power transmission systems. This trend is expected to continue as countries seek alternative energy sources and invest in renewable energy projects, particularly in solar and wind energy.
According to Zafer Ergezen, a futures and commodity markets expert, the demand from AI infrastructure is keeping copper prices strong despite recession fears. He notes that interest rates remain high, but the current global growth is driven by AI investments.