FX.co ★ Copper Advances as Dollar Weakens

Copper futures rose toward $6.60 per pound on Friday, breaking a three-session losing streak as the US dollar weakened amid growing concerns about a possible slowdown in the AI-driven capital expenditure boom that has underpinned the US economy and financial markets. A softer dollar makes dollar-denominated commodities such as copper cheaper for overseas buyers, lending support to demand.

Prices also drew strength from tightening supply conditions, with labor strikes and adverse weather disrupting mining operations in Chile, the world’s largest copper producer. Work stoppages hit BHP Group’s flagship Escondida mine and Antofagasta Plc’s Centinela mine, while unfavorable weather impeded open-pit activity at Codelco’s El Teniente mine.

On the demand side, copper continued to benefit from robust growth prospects linked to data center infrastructure, semiconductor manufacturing, and battery energy storage systems.