Gold and silver are notching record highs, but there’s a third metal soaring into the new year. Copper prices rose by more than 40% in 2025 and are up over 9% year to date.
On Comex, copper (HG=F) settled at a record $6.20 a pound on Thursday. Global copper prices officially surpassed $13,000 per tonne on the London Metal Exchange, driven by sharp demand, supply chain disruptions, and global trade policies.
Read more: Copper surges in ‘unsustainable’ rally, joining silver and gold in 2026 metals frenzy
Each type of metal reacts slightly differently to economic conditions, and copper is no exception. However, unlike gold (GC=F) and silver (SI=F), copper isn’t so directly influenced by investor sentiment or economic expectations. Its price movements can typically be attributed to physical growth and expansion.
Copper is often considered a barometer for the economy. It plays a central role in power grids, construction, industrial machinery, and more. When there’s a demand for those types of goods or services, it’s typically a good sign that the economy has a clean bill of health — giving copper its nickname: Doctor Copper.
Rising copper prices often signal strong industrial demand and a rapidly growing economy, while falling prices may indicate a slowdown. Copper is “a major beneficiary of investments in grid and power infrastructure globally, as AI and defence heighten the need for robust and secure energy networks,” wrote Goldman Sachs Research analyst Eoin Dinsmore.
Gold is seen as more of a “safe-haven” asset and a hedge against inflation. Silver straddles the line between gold and copper and has both investment and industrial purposes. Copper, however, is predominantly industrial. It’s not typically purchased to be stored like gold or silver, it’s meant to be used, which is why it’s usually the strongest indicator, of the three metals, that the economy is moving in the right direction.
Read more: What to know before buying gold, silver, or platinum from Costco
There are a few key reasons that copper is experiencing a surge right now. Major copper-producing regions such as Chile and Indonesia have faced supply challenges and environmental disasters that have contributed to a global copper shortage and a tighter market.
A dip in supply isn’t the only factor that’s pushing prices higher. In 2025, the Trump administration issued tariffs on several categories of copper imports, putting additional pressure on the market. At the same time, heavy investment in the AI sector is significantly boosting demand, as data centers rely heavily on copper.
One source estimates that hyperscale AI data centers can use up to 50,000 tons of copper per facility.
As far as where prices are headed — Goldman Sachs Research expects the price to remain at $13,000 in the first quarter of the year; however, researchers suggest that we could be at the tail end of this copper rally, forecasting a decline in prices to $11,000 per tonne by the end of this year.
“One key driver of the commodity’s price is likely to be a mid-year decision from the US administration on refined copper tariffs,” wrote Dinsmore. “Buyers have been stockpiling copper in the US in advance of the expected import tax, creating expectations of temporary scarcity outside of the US.”
Read more: Gold alternatives? How to invest in silver, platinum, and palladium.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance
Leave a Reply