FX.co ★ Copper Falls to 3-1/2-Month Low

Copper fell below $6.30 per pound, its lowest level since July 17, as mounting concerns over tighter regulation and growing opposition to AI data center projects cast doubt on future demand for the metal. Technology shares slumped sharply, with an ETF tracking US-listed semiconductor companies dropping more than 12% after Democrats secured control of both chambers of Congress in the midterm elections.

The political shift is expected to bring heightened scrutiny to data center development, potentially delaying or halting infrastructure projects that had been projected to generate substantial copper consumption. Democratic gubernatorial victories in multiple states, including Texas, mean that roughly half of planned US AI data center expansions could now face more stringent regulatory hurdles.

Texas Governor-elect Gina Hinojosa has repeatedly called for an immediate moratorium on new data center projects, underscoring the increasingly uncertain outlook for future build-outs. Copper had reached a record high of $6.80 on September 10, supported in part by optimism over AI-driven demand.