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VT 
Key Points
- Shanghai copper surged 6.71% to 109,110 yuan after hitting a record 110,970 yuan
- LME three-month copper climbed 6.32% to $13,913.50, after peaking at $14,125
Copper touched record highs on Thursday as the rally in physical metals broadened beyond gold and silver. Traders increased exposure to industrial commodities amid ongoing geopolitical risk and a persistently weak US dollar, driving strong price action across global copper benchmarks.
The most-active copper contract on the Shanghai Futures Exchange surged 6.71% to close at 109,110 yuan per metric ton, after rising as much as 8.53% earlier in the session to an all-time high of 110,970 yuan. Momentum remained strong throughout daytime trading, reflecting aggressive buying interest.
In London, the three-month copper contract on the LME climbed 6.32% to $13,913.50 per ton by 0700 GMT, after spiking 7.94% to a fresh record of $14,125 earlier in the day.
The move placed copper firmly at the centre of the current commodities surge.
A cautious forecast suggests prices may remain elevated while macro drivers stay supportive, though volatility may increase after such sharp gains.
Rotation From Precious Metals Lifts Copper
Traders pointed to a clear rotation within the metals complex. After sustained strength in gold and silver, traders have begun reallocating capital toward industrial metals, with copper emerging as a primary beneficiary.
This shift followed record highs in both gold and silver, driven by heightened demand for physical assets amid geopolitical tension.
On Wednesday, US President Donald Trump threatened Iran with possible attacks if it failed to reach a nuclear agreement, reinforcing demand for real assets across the board.
Copper’s role as both a growth-linked and inflation-sensitive metal has made it attractive in this environment, particularly as traders look to diversify exposure beyond traditional safe havens.
Technical Analysis
Copper surged by over 5% to trade at 6.2466, with strong bullish momentum driving prices off the intraday low of 6.2091. After a steep early climb that peaked at 6.3256, the metal entered a correction phase but found stable footing mid-session.
A new leg higher is now underway, supported by a clean rebound above all major moving averages: MA5 at 6.2427, MA10 at 6.2363, MA20 at 6.2322, and MA30 at 6.2272—now acting as layered dynamic support.
The short-term structure has turned constructive, with rising volume (VOL: 19.00) confirming the renewed interest from buyers.
Price action suggests copper may retest the earlier high if it can sustain momentum above 6.2495, while a drop below 6.2335 could delay the breakout attempt. Bulls will want to see continued higher lows and increasing volume to confirm trend strength.
Short-Term Outlook
Copper’s surge reflects a convergence of supportive forces, including dollar weakness, geopolitical uncertainty, and investor rotation into physical assets.
While spot demand signals from China remain soft, futures markets continue to price in tighter supply and sustained macro risk.
Near-term direction is likely to depend on whether the dollar stabilises and whether geopolitical tensions escalate further. Continued pressure on the greenback could keep copper supported, while any easing in macro risk may trigger profit-taking after a powerful run.
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