Copper prices hit seven-week low amid AI and diplomacy concerns
The metal fell on the London Metal Exchange as traders weighed global growth fears and potential progress in US-Iran peace talks.
Copper prices dropped to a seven-week low on Tuesday as traders evaluated the artificial intelligence trade and diplomatic prospects in the Middle East, according to Mint.
The metal fell 2.2 per cent on the London Metal Exchange to settle at $14,036 a metric ton, its lowest level since Sept. 14. Comex copper also declined 2.5 per cent to settle at $6.4020 a pound.
Unconfirmed reports regarding progress in US-Iran peace talks led to a drop in oil, which pushed the US dollar and bond yields higher. This movement weighed on metals priced in US currency.
Concerns regarding artificial intelligence spending have impacted equities recently, raising fears about global demand for metals. Analysts at RBC Capital Markets noted that the recent decline has caused traders to re-examine the narrative that AI demand would drive copper's rally.
While copper has risen about 13 per cent this year, Tuesday's fall may move prices out of the range held over the last two months. Uncertainty regarding Washington's plans for import tariffs on refined metals is also affecting prices.
Other metals also saw declines, with tin falling 4.5 per cent to its lowest level since April. All other base metals on the London Metal Exchange declined.
