Copper climbed to $6.13 per pound on July 3, gaining 0.25% on the day as the US dollar softened and traders dialed back expectations for near-term Federal Reserve rate hikes. Copper is up 22% year-over-year, driven by a cocktail of AI-fueled demand, electrification buildouts, and tariff-induced supply distortions.
What’s driving the move
A weaker dollar makes commodities priced in greenbacks cheaper for international buyers, boosting demand. Lower rate expectations tend to be a tailwind for growth-sensitive materials like copper, because cheaper borrowing costs support the kind of industrial expansion that consumes massive quantities of the metal.
Copper’s recent path hasn’t been a straight line up. Prices dropped 5.85% over the preceding month, a reminder that tariff speculation and mixed economic signals have injected real volatility into the market. Earlier in 2026, copper nearly touched $6.67 per pound before pulling back.
The AI and electrification demand thesis
