The copper price climbed back above its April support trendline on Tuesday, erasing last week’s breakdown. The rebound tracked a recovery in AI stocks after Anthropic made its initial public offering (IPO) filing public.
The move leaves copper about 3.5% below its September record. Yet metal is still piling up in US warehouses, which could limit how far bulls can push prices.
Why Did Anthropic’s IPO Lift Copper Price?
Claude developer Anthropic published its filing on Monday. The Nasdaq gained 0.8% and Nvidia 2.4% as the filing lifted chip stocks.
The connection runs through data centers. Anthropic’s filing lists roughly $587 billion in compute and lease obligations, and every new AI campus is wired with copper.
The same link worked in reverse last week. A tech selloff helped push copper through its April trendline on October 22.
“…the recent rout in AI stocks hit copper prices hard, reflecting just how sensitive the metal has become towards the AI sector.” James Harte, analyst at Tickmill
Is Physical Copper Tight Enough to Hold the Bounce?
On the London Metal Exchange (LME), three-month copper rose 1.1% to $14,487.50 per tonne, its highest since October 16, Reuters reported.
Supply outside the US looks thin. China’s Yangshan premium, the fee buyers pay to import refined copper, reached $188 per tonne, a nearly 13-year high.
Shanghai exchange inventories also fell more than 25% in a week as smelters paused for maintenance.
ING commodities strategist Ewa Manthey expects that shortage to support prices. Broker Sucden Financial, however, noted that growing US stockpiles continue to cap the headline price.
Is Copper’s $6.95 Record Back in Play?
On the daily chart, the October 22 breakdown failed within days. Copper never reached the 0.382 Fibonacci support near $6.31.
Price now trades near $6.72 per pound, pressing against the $6.64 to $6.72 resistance zone that capped October rallies.
A daily close above that zone could open a path toward the $6.95 record.
XCU daily chart / Source: Tradingview
If the breakout stalls, the 0.382 level at $6.31 may serve as the main defense area for buyers. The Relative Strength Index (RSI), a momentum gauge, sits near 53 and is rising.
The Federal Reserve’s rate decision on Wednesday and Big Tech earnings this week will test the AI bid. Nigel Green, CEO of deVere Group, called the Anthropic IPO listing “a referendum on the entire AI trade.” For now, copper is voting with it.
