Copper snapped a two-day loss as it shrugged off a fresh round of US strikes on Iran to focus on optimism over a longer-term demand boost from artificial intelligence. The industrial metal rose as much as 1% in London, tracking gains in Asian equities led by semiconductor firms. That partially trimmed a larger loss in the previous session sparked by the escalation of the Iran conflict. Copper is u...
Copper snapped a two-day loss as it shrugged off a fresh round of US strikes on Iran to focus on optimism over a longer-term demand boost from artificial intelligence. The industrial metal rose as much as 1% in London, tracking gains in Asian equities led by semiconductor firms. That partially trimmed a larger loss in the previous session sparked by the escalation of the Iran conflict. Copper is used for wiring and in renewable energy, and stands to benefit from a boost in power demand from new data centers for AI. The resumption of hostilities in Iran threatens to once again restrict energy supplies from the Strait of Hormuz, curbing economic growth and demand for industrial commodities like copper. The metal has largely traded in a relatively narrow range since an interim peace deal was signed last month, but may break lower if the war restarts in earnest. Rising energy prices may also shift the outlook for US inflation and lead to higher Federal Reserve interest rates, which tend to damp demand for non-yielding assets like metals. Minutes from the central bank’s June meeting showed a few officials saying there was a case for further monetary tightening, although interest rates were left on hold. Copper rose 0.9% to $13,289 a ton on the London Metal Exchange as of 10:18 a.m. in Singapore. Zinc climbed 0.8% and aluminum added 0.3%.