Copper: AI slowdown fears pressure prices – ING
ING’s Warren Patterson and Ewa Manthey highlight that Copper is retreating as calls from major technology executives to slow AI development hit tech stocks and dampen expectations for data-centre investment.
ING analysts Warren Patterson and Ewa Manthey note that copper prices are declining due to concerns over AI development slowdown, which has negatively impacted tech stocks and dampened expectations for data center investment. They also mention rising inventories and improving exchange availability, indicating a loosening of tightness in the London Metal Exchange, although persistent mine-supply constraints are expected to support prices once current positions are unwound.
In base metals, copper continues to retreat, further pressured by tech executives' calls for AI development moderation. These factors, combined with a stronger dollar and cautious sentiment ahead of the Fed meeting, weigh on the wider base metals complex. Despite signs of improving exchange availability, copper is likely to stay under pressure as positioning tightens.
However, persistent mine-supply constraints are likely to continue supporting prices in the near term.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
