According to CNBC, copper prices have risen 15.8% so far this year and are up more than 30% over the past 12 months, significantly outperforming gold. Over the same period, gold futures are down 4.11% year to date and down 4.52% over the past 12 months; spot gold is down 4% year to date and down 4.89% over the past 12 months. Investors interviewed believe that demand from artificial intelligence, power grid investment and defense spending is enough to keep copper prices resilient against a pullback in technology stocks.
Demand "almost inelastic"
Taylor Melvin, chief executive of Arizona-based mining exploration company Ivanhoe Electric, spoke to CNBC as LME Week, the annual metals industry gathering, opened in London. He said demand for copper from the technology sector is "almost inelastic," and it is hard to imagine large technology companies deciding whether to build hyperscale data centers based on the level of copper prices; the same applies to demand from defense budgets. He acknowledged that technology stock valuations have retreated, but believes the related industries are still growing and will continue to generate new demand.
Tariffs pending
Whether the United States will impose tariffs on refined copper remains undecided, which is also supporting copper prices. The U.S. Commerce Department recommended in 2025 a 15% tariff starting Jan. 1, 2027, but has so far not publicly announced a final decision. Iain Pyle, senior investment director at Aberdeen Investments, said that because of potential tariffs, a considerable portion of the world's copper is already stored in the United States, and it is unclear whether those inventories can supply other markets.