Copper prices surpassed gold: increased by 15.8 percent since the beginning of the year

Artificial intelligence infrastructures, modernization of power grids and global increase in defense spending are strengthening demand for industrial metals.

Copper, which is among the basic inputs of the electronics, construction and transportation sectors, is also considered one of the important indicators of economic activity. Increasing areas of use make copper a strategic raw material for governments and global industrial companies, while also increasing the need for reliable and uninterrupted supply.

COPPER HAS INCREASED 15.8 PERCENT SINCE THE NEW YEAR

While copper prices have gained 15.8 percent in value since the beginning of the year, the increase in the last 12 months has exceeded 30 percent.

Increasing electricity needs of building intelligence data centers, renewal investments in energy infrastructures and expenditures in the defense industry are among the main factors supporting the demand for copper.

The fact that copper has a wide range of uses, from energy transmission to electronic systems, causes prices to become more sensitive to changes in global industrial investments.

REDUCTION IN ALT DURING THE SAME PERIOD

In the same period, a downward trend was observed on the gold side, which was seen as a traditional safe haven.

Gold futures have lost 4.11 percent since the beginning of the year and 4.52 percent in the last year.

Spot gold prices also decreased by 4.89 percent on an annual basis and approximately 4 percent since the beginning of the year.

Thus, the difference between the performance of copper and gold highlighted the impact of industrial and technology investments on commodity markets.

US COPPER TAX PLAN INCREASED UNCERTAINTY

Another topic that affected the course of copper prices was the foreign trade policies of the USA.

The US Department of Commerce has proposed a 15 percent tariff on processed copper starting January 1, 2027.

While the final decision regarding the proposal has not yet been announced, expectations regarding the effects of the possible tax on global trade flows and copper demand in the USA are reflected in the pricing.

If the customs duty comes into force, costs in the processed copper trade to the USA may increase and supply chains may be reshaped.