Copper prices edged higher on Thursday, recovering from a seven-week low touched the previous day. The metal's advance was fueled by a weakening U.S. dollar and a rally in artificial intelligence stocks, which boosted broader market sentiment.
The industrial metal, a key component in electrification and construction, has been under pressure from concerns over global interest rates. However, the softer dollar made dollar-priced commodities cheaper for overseas buyers, providing a near-term tailwind.
The AI-driven stock rally lifted investor confidence in sectors tied to technology and electrification, where copper is essential for wiring and components. This helped counter lingering rate anxieties that had dragged copper to its lowest level in seven weeks on Wednesday.
Market participants will now monitor upcoming economic data and central bank signals for further direction. A sustained dollar weakness and continued AI momentum could provide additional support, though rate hike fears remain a risk.
Analysts caution that the rebound may be fragile if macroeconomic headwinds reassert themselves. The metal's trajectory hinges on balancing industrial demand optimism with monetary policy tightening expectations.