Copper Surges to Record High on Supply Constraints and AI Demand
Copper has reached an all-time high on the London Metal Exchange (LME), hitting $14,533 per tonne. The metal's price surge is attributed to supply constraints and increasing demand from industries such as power grids, renewable energy equipment, artificial intelligence data centers, and electric vehicles.
The global mine production decline by 1.1% in the first half of 2026 has propelled LME copper to unprecedented highs. According to Ruchit Thakur, Market Analyst at VT Markets, uncertainty surrounding US tariffs has altered trade flows, restricting availability across other key regional markets.
Thakur noted that mine production levels, LME and SHFE inventory trends, Chinese industrial demand, and upcoming US tariff policies will be crucial factors for investors to monitor. The strength in copper has also reflected positively on Indian mining and metal stocks, with Hindustan Copper gaining nearly 5% to trade at ₹532.20.
Gold prices have also moved higher across Indian markets, supported by weakness in the US dollar and demand for safe-haven assets amid geopolitical and market uncertainty. The average price of 24-carat gold stood at ₹1,55,350 per 10 grams, while spot gold gained nearly 0.6% to reach $4,432.79 per ounce.
The next major triggers for precious metals will come from the US economic data calendar, with the Producer Price Index (PPI) and Consumer Price Index (CPI) due this week ahead of the Federal Reserve's policy meeting later this month. Markets will be watching the inflation data for clues on whether price pressures are cooling enough to offset the hawkish signal from Friday's jobs data.