Metals have hit all-time highs this year, with gold (GC=F) and silver (SI=F) surging recently, but there’s a third metal hitting an all-time high of its own. Copper prices have risen more than 35% this year, on track for their biggest annual gain since 2009, driven by rising technology demand, supply constraints and tariff uncertainty.
Global copper prices on the London Metal Exchange (HG=F) officially topped $12,000 a ton for the first time on Tuesday and continued to move higher on Wednesday.
Every metal responds slightly differently to economic conditions, and copper is no exception. However, unlike gold and silver, copper is not directly affected by investor sentiment or economic expectations. Its price movements can often be attributed to physical growth and expansion.
Copper is often seen as a barometer of the economy. It plays a central role in power grids, construction, industrial machinery and other fields. When there’s demand for these types of goods or services, it’s usually a good sign that the economy is doing well – hence copper’s name: Dr. Copper.
Goldman Sachs research shows that rising copper prices typically herald strong industrial demand and rapid economic growth, while falling copper prices may herald an economic slowdown. Goldman Sachs research analyst Eoin Dinsmore wrote in a report that copper is “a major beneficiary of investment in global grids and power infrastructure as artificial intelligence and defense increase demand for strong and secure energy networks.”
Gold is viewed more as a “safe-haven” asset and a hedge against inflation. Silver is somewhere between gold and copper and has investment and industrial uses. However, copper is mainly used in industry. It’s not typically bought for storage like gold or silver, but for use, which is why it’s often the strongest indicator of the three metals that the economy is moving in the right direction.
Read more: Why is silver outperforming gold? What you need to know before investing.
There are a few key reasons for copper’s current surge in price. Major copper-producing regions such as Chile and Indonesia face supply challenges and environmental disasters, leading to global copper shortages and tighter markets.
“After expecting mine supply growth to be essentially flat this year, our forecast for mine supply growth in 2026 has dropped to just around +1.4%, or about 500km below our forecast at the beginning of the year,” Gregory Shearer, head of base and precious metals strategy at JPMorgan, said in a statement.
Falling supply isn’t the only factor driving up prices. In July, the Trump administration imposed tariffs on several types of copper imports, putting additional pressure on the market. At the same time, heavy investment in the artificial intelligence industry is significantly boosting demand due to data center dependence on copper.
One source estimates that hyperscale AI data centers could use up to 50,000 tons of copper per facility.
In terms of price trends, JPMorgan Global Research expects copper prices to reach US$12,500 per ton in the second quarter of 2026, with the final full-year average price being approximately US$12,075 per ton.
While researchers are optimistic that copper prices will continue their upward trend, experts say the long-term impact of the recent price surge remains uncertain.
“The intersection of tariffs and copper prices in July 2025 highlights the complex dynamics of global trade and commodity markets,” said David Koch, chief financial officer and director of portfolio management at Halbert Hargrove. “While the immediate impact is a sharp increase in copper prices, the long-term consequences will depend on how markets, governments and industry adapt to this new trading environment.”
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