FX.co ★ Copper Falls to 4-Month Low

Copper prices declined to $6.20 per pound in November, the lowest level in four months, in line with broader weakness across base metals tied to data center construction and electrification projects, as markets reassessed the scale of anticipated demand growth for infrastructure in the sector. The metal surrendered its brief rebound after stronger-than-expected US inflation led markets to price in multiple Federal Reserve interest rate hikes in the coming quarters, boosting the dollar and raising borrowing costs for heavily indebted AI infrastructure firms. These pressures were compounded by the Democratic Party securing a majority in the US Congress, a development associated with policies that could slow investment in copper-intensive infrastructure projects. A Democratic-controlled Congress also dampened demand for US copper futures, as the likelihood of President-elect Trump implementing proposed tariffs on the metal diminished.