Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Copper Prices Slide to Seven-Week Low as AI Concerns and US-Iran Talks Weigh
Highlights:
Copper Prices Retreat Amid Global Market Uncertainty
Copper prices faced renewed selling pressure on 3 November 2026 as concerns surrounding artificial intelligence (AI) investment, shifting US monetary policy expectations and potential diplomatic progress between the US and Iran unsettled commodity markets. On the London Metal Exchange (LME), copper declined 2.2% to US$14,036 per metric tonne, reaching its lowest level in approximately seven weeks. Meanwhile, Comex copper futures dropped 2.5% to US$6.4020 per pound.
Latest market data showed copper near US$6.3748 per pound, reflecting a marginal daily decline of 0.06%, while monthly performance remained negative at 3.12%.
AI Sector Weakness Challenges Copper Demand Expectations
Renewed selling across technology stocks has raised questions about the sustainability of AI-related infrastructure investment. Copper plays a critical role in data centres, electricity transmission networks and advanced computing facilities, making its demand outlook sensitive to technology-sector spending. Although AI expansion remains a significant long-term demand driver, concerns over elevated technology valuations have weakened near-term investor confidence.
US-Iran Diplomacy and Interest Rate Expectations
Potential diplomatic progress between Washington and Tehran has influenced energy prices and broader financial markets. Expectations of reduced geopolitical tensions have pressured crude oil, while rising bond yields and a stronger US dollar have created additional challenges for copper. Investors are also evaluating the possibility of further Federal Reserve tightening as inflationary pressures persist.
Supply Constraints Could Limit Further Weakness
Despite recent selling, copper's supply outlook remains challenging.
Key developments include:
Outlook: Can Copper Prices Regain Momentum?
Copper's near-term direction will likely depend on technology-sector sentiment, US interest rate expectations and geopolitical developments. Further dollar strength could maintain downward pressure, while constrained mine production may provide underlying support.
Over the medium term, electricity infrastructure investment, renewable energy development and AI-related construction could reinforce consumption. However, sustained price recovery will require stronger evidence of industrial demand and improving investor confidence.
Note- All data presented is based on information available at the time of writing.
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