Copper Surges Past Gold to New All-Time High Amid Tariff Uncertainty

Copper prices have surged to a new all-time high, surpassing gold's gains over the past year. The benchmark three-month copper contract on the London Metal Exchange rose 0.8 percent during trading to $14,533 per ton, marking an all-time high and outpacing the previous record of $14,527.50 set in January.

The price increase is attributed to a combination of factors, including demand growth tied to AI data center and power grid investment, as well as the possibility of additional US tariffs and production disruptions at major mines. According to Cristian Sifuentes, chief analyst at the Chilean Copper and Mining Research Center (Cesco), 'The possibility of tariffs is having a bigger impact on trading than an actual excess in final demand.'

Despite a global copper market that is not currently in a state of complete supply shortage, weak mine supply and expectations of long-term demand growth have contributed to the price surge. Refined copper output rose 2.4 percent in the first half of this year, outpacing growth in consumption and producing a supply surplus of about 131,000 tons.