FX.co ★ Copper Extends Fall on Tech Selloff

Copper futures fell toward $6.50 per pound on Friday, extending losses for a second consecutive session as disappointing earnings reports sparked another selloff in technology and AI stocks. The metal is central to the global AI buildout due to its heavy use in data centers and power infrastructure, making copper prices especially sensitive to swings in tech-market sentiment.

At the same time, investors grew more anxious about the possibility of a Federal Reserve rate hike later this year after hotter-than-expected PCE inflation data and persistent energy-related price pressures.

Despite the recent pullback, copper remained underpinned by tightening physical supplies in China, the world’s largest consumer, as evidenced by rising import premiums. This development highlights intensifying competition for copper both inside and outside China. Earlier worries over potential US import tariffs had already prompted traders to divert shipments toward American warehouses, further constraining availability in other markets.