FX.co ★ Copper Gains as Dollar Weakens

Copper futures experienced a 2% increase, reaching approximately $5.98 per pound on Wednesday. This upward movement countered the previous session's losses, primarily due to a significant drop in the dollar's value, which benefited the overall metals market, including copper, gold, and silver. A weaker dollar enhances the attractiveness of dollar-priced commodities for investors using other currencies, thereby boosting demand. Copper prices were further bolstered by growing retail investor interest and structural demand linked to renewable energy, electrification, and artificial intelligence advancements. However, the price gains were limited by indications of reduced demand in China, the world's largest consumer, as well as increasing global inventories. Recent data indicated that copper stocks at the Shanghai Futures Exchange warehouses rose last week to a historically high seasonal level, signaling weak consumption. In parallel, COMEX copper inventories surpassed 500,000 tons for the first time, while stockpiles at the London Metal Exchange reached their highest since May 2025, bringing total global reserves above 900,000 tons.