Copper Surges to Record High on Supply Constraints and Strong Demand

Copper prices have surged to a record high on the London Metal Exchange (LME), reaching an all-time high of $14,533 per tonne. This rally is supported by supply constraints and strong demand from power grids, renewable energy equipment, artificial intelligence (AI) data centers, and electric vehicles.

The recent surge has been driven largely by constrained mine output, operational disruptions, and growing supply tightness outside the US. Analysts expect demand to remain strong over the medium to long term as investment in power-intensive AI data centers and grid infrastructure accelerates.

Meanwhile, gold prices have also moved higher across Indian markets, supported partly 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 22-carat gold was priced at ₹1,42,400 and 18-carat gold at ₹1,16,510 per 10 grams.

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.