Copper nears record high on robust AI infrastructure demand

Copper futures are approaching record highs, driven by surging demand from artificial intelligence (AI) data centre infrastructure alongside severe supply disruptions. Strong technical momentum continues to support a bullish outlook, despite emerging overbought conditions.

By Daniel Mejía

Copper touched $6.86 per pound, nearing record highs on the back of booming demand for AI data centre infrastructure.
Severe weather conditions in Chile, the world's leading copper producer, have disrupted supply and reinforced upward price pressure.
The primary price trend remains decisively bullish, although momentum indicators are beginning to signal overbought conditions.

Date: 6 August 2026

Copper nears record high amid strong AI infrastructure demand and supply disruptions

The Copper futures contract (HGU6) closed the session with a marginal price decline following an upward intraday movement that reached the $6.86 level. This zone represents record-high territory, highlighting solid demand for the industrial metal—an essential material for construction, electronics, transportation, and, increasingly, artificial intelligence (AI) applications, particularly the rapid expansion of data centre infrastructure in recent years.

Additionally, a CNBC analysis suggests that the upward trajectory in copper prices is also tied to restricted market supply. The report notes that supply constraints stem primarily from production disruptions in Chile—the world's largest producer—caused by heavy snowfall, excessive rainfall, and strong winds.

Consequently, the copper futures contract maintains a strong bullish trajectory that is pushing prices toward an unprecedented market zone, as fundamental drivers and technical factors converge to reinforce the upward momentum.

Technical analysis of the copper futures contract

From a technical perspective, the Copper futures contract is navigating strong bullish momentum. A detailed breakdown of the current market architecture reveals several key observations:

Trend Context: In the long term, the copper contract demonstrates a robust upward trajectory. The price is trading comfortably above its 50-day, 100-day, and 200-day Simple Moving Averages (SMAs), confirming that the primary bullish trend remains predominant.
Resistance Levels: If the short-term resistance at $6.72 is broken to the upside, the next prominent technical ceiling sits at the $7.00 level—a major psychological barrier that aligns with the upper boundary of a long-term ascending channel pattern. A decisive breach above these zones would open the door for higher valuations in uncharted price territory.
Support Levels: Should the immediate short-term resistance at $6.72 fail to be breached, leading to a downside rejection, the next key technical floors are located at $6.35 and $5.95, where the 50-period and 200-period SMAs are currently trading. A decisive break below these support levels would materially increase the probability of a broader market correction.
Momentum Indicators: Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) reflect positive momentum, suggesting that short-term bullish price action could persist. However, the RSI is approaching overbought territory, signalling caution for long positions.