Copper and silver prices decline amid AI sector sell-off and Fed uncertainty

Copper and silver prices have faced downward pressure driven by a broader sell-off in artificial intelligence stocks and anticipation surrounding the U.S. Federal Reserve's policy decisions. Copper prices on the London Metal Exchange (LME) and Comex have declined, as investors reduce exposure to risky assets ahead of upcoming IT earnings and central bank meetings.

Despite the volatility, Taylor Melvin, president of Ivanhoe Electric, suggested that copper demand remains resilient due to the expanding infrastructure requirements of AI technology. However, market participants are also navigating high energy costs and limited copper supply in China caused by declining domestic production.

Silver has reached its lowest level in nearly a year, dropping below $53 per ounce. This decline is attributed to rising inflation concerns fueled by higher oil prices, which may lead central banks to maintain high interest rates for longer. As non-yielding assets, both gold and silver become less attractive in high-rate environments. Additionally, some investors have sold precious metals to raise cash following the depreciation of technology stocks.