Copper prices settle a record high as metals are going 'absolutely bonkers' right now

By Myra P. Saefong

Fed's Powell touts U.S. economy's 'firm footing,' lifting expectations for copper demand

"We're seeing more investment in copper, and people who didn't pay attention to copper are now focused on it," said Phil Flynn of the Price Futures Group.

Copper prices settled their highest level on record Thursday, joining the rally seen in precious metals that has lifted gold and silver to all-time highs of their own.

The move for the industrial metal comes on the back of rising demand from China and comments Wednesday from Federal Reserve Chair Jerome Powell, who sounded upbeat about the U.S. economy - leading to expectations for higher copper consumption.

On Comex, copper for March delivery (HGH26) (HG00) climbed 4.7% to settle at $6.20 a pound, logging the highest finish based on records dating back to 1972, according to Dow Jones Market Data. It traded as high as $6.583, which was a new all-time intraday high.

Shares of the Global X Copper Miners exchange-traded fund COPX also touched a record-high intraday level of $99.99, based on data going back to 2010. It was last up 2.3% at $94.12.

The U.S. clearly has an "improved growth outlook, mainly driven by strong consumption factors such as artificial intelligence and [the] data-center buildout," said Phil Flynn, senior market analyst at the Price Futures Group.

"Of course, when you think about that, one of the first things you think about is copper, and copper prices are exploding after the Fed chairman's comments," he said in a Thursday report.

Powell said the U.S. economy expanded at a "solid pace" last year and has come into 2026 on a "firm footing."

"Copper may be the most important commodity in the world right now when it comes to the artificial-intelligence revolution - and without copper, none of it will be possible," said Flynn. Given that, "we're seeing more investment in copper, and people who didn't pay attention to copper are now focused on it."

Gold and silver prices also climbed to record highs this week. The most active, April gold contract (GCJ26) (GC00) settled Thursday at $5,354.80 an ounce, while March silver (SIH26) finished Monday at $115.504 an ounce.

Read: Investors aren't scared of record gold and silver prices. Wall Street's price targets are struggling to keep up.

Overall, "it's absolutely bonkers across the metals space, with copper leading the group in base metals," said Edward Meir, an analyst at Marex. Heavy speculative buying originated in China, and that was followed by further buying strength in the West, he noted.

There have also been reports that Beijing is loosening restrictions on China's home builders, raising hopes of increased demand for copper. Shares in Chinese real-estate developers surged after various agencies said that they are no longer required to report monthly data related to the country's so-called three red lines - referring to caps on debt-to-assets, debt-to-cash and debt-to-equity ratios that Beijing imposed in 2020 on developers for obtaining new lending.

Read: Copper surges to record high on hopes for revival in China's homebuilding sector

Copper prices were also getting a lift from the earnings reports of tech giants Meta Platforms (META) and Microsoft (MSFT), which showed that spending on the AI buildout will continue.

Earnings reports from companies like Meta point to increased spending on data centers which, in turn, is lifting copper, said Marex's Meir.

Where and when this rally ends, "nobody knows," he added.

Margin requirements - defined as the minimum amount of equity a trader has in their brokerage account - could be increased, and that may "prick the bubble" for copper, said Meir.

A sign of a top for prices, he noted, may be an explosive rally to the upside followed by a close sharply lower on the day. "I'm waiting to see that," Meir said.

-Myra P. Saefong

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