Copper prices surge as industrial demand outpaces gold

Industrial copper has emerged as a dominant financial asset, rising 15.8% since the start of the year and over 30% in the last twelve months. This surge contrasts with gold, which saw a decline of more than 4% during the same period.

Key drivers for the increased copper demand include massive investments in artificial intelligence, the modernization of energy grids, and rising global military budgets. Industry experts note that technological giants are expected to continue building large-scale data centers for AI regardless of rising costs.

Market tensions have been further heightened by a recommendation from the U.S. Department of Commerce to implement a 15% tariff on refined copper imports starting in January 2027. This move has triggered a redirection of global stocks toward U.S. facilities, impacting European industry. Aurubis, Europe’s largest producer, has offered record premiums to clients as European warehouses face shortages.

In the precious metals market, gold prices experienced a sharp drop of nearly 4% at the end of last week. Analyst Daniel Hristov of Golden Reserve suggests that traditional forecasting models are being challenged by a shifting global landscape, where rising interest rates and growing sovereign debt concerns are altering investor behavior.