Copper Price Forecast: Risks to Price Rebound as AI Spending Concerns Persist

Huitong Network, November 2 — Concerns over spending in the artificial intelligence sector may limit the rebound potential for copper prices. If copper prices break above $6.95, an advance toward $7.50 is possible. If copper prices fall below $6.40, they may further test $6.20.

On Monday (November 2), after experiencing a sharp sell-off last Friday, copper prices rebounded. The trigger for this sell-off was the market’s anxiety over AI-related expenditures. There are concerns about whether massive investments in the artificial intelligence sector can generate sufficient profits. Since copper is widely used in data center and power grid construction, these concerns are especially significant for the copper market.



Another risk facing the copper market comes from expectations of high interest rates. Elevated borrowing costs may slow the pace of industrial facility construction, thereby dampening demand for copper. This means copper prices remain vulnerable to these risks; before prices manage a breakout to the upside, any rebound is likely to be limited.

Data show that China’s private manufacturing PMI in October edged down from 52.1 in September to 52. Meanwhile, the October manufacturing PMI released by China’s National Bureau of Statistics dropped to 49.2.

In my view, pressures from the high-inflation environment are steadily mounting mid-term. However, the actual rollout of AI projects is likely to boost copper demand, as this metal is consumed in large amounts in AI-related infrastructure.

Looking at the daily chart, since August 2026, copper prices have been consolidating in the $6.40–$6.95 range. Once a breakout above $6.95 occurs, the copper market may see a strong upward trend emerge.

Conversely, if prices fall below $6.40, copper could test support near $6.20, which corresponds to the 200-day simple moving average. As long as copper remains above $6.00, the possibility of another rally to $7.50 remains high.

The potential driver of this uptrend is the large-scale construction of AI data centers, with copper being a critical industrial metal in this field. Although the overall sentiment remains bullish, the quarterly chart shows copper is consolidating near a strong resistance level.

Prices need to hold above the $6.00 support established by the ascending channel pattern. Copper climbed 6.84% in the third quarter and is currently waiting for a decisive move; only a breakout above $6.90 would drive prices higher.



The four-hour chart also illustrates consolidation, with copper prices awaiting the next directional move. Trendlines indicate the short-term trading range may narrow further.



Even as copper prices keep oscillating between $6.40 and $6.95, copper has shown relative strength compared to silver and gold. The copper-silver ratio confirms this: after forming a bottom near 0.064, it has broken upward past 0.107.

The copper-silver ratio rose 21.22% in October and could continue to advance toward 0.1580. If this ratio tops out later, it may signal that silver has reached a bottom.

Likewise, the copper-gold ratio found support at 0.0011 and continues to accelerate upward; its long-term resistance is at 0.0019. Once this is broken, the wedge pattern will be invalidated. However, if it tops out near the resistance, that could suggest gold prices have reached a bottom.



Last Friday’s massive sell-off in the technology sector triggered a short-term pullback in copper prices. Still, over the past three months, copper has continued to move within the $6.40–$6.95 range. AI projects are likely to support copper demand, but high borrowing costs and rising inflation pose risks for copper prices. In my view, copper must break above $6.95 to unlock further upside potential; if it falls below $6.40, copper may retreat to the $6.00–$6.20 range.