By Copper prices experienced a significant rise on Wednesday, driven by concerns over potential supply disruptions following a massive power outage in Chile, the world’s top copper producer. The blackout affected over 90% of the population and halted operations at major mines, including Codelco’s El Teniente and Chuquicamata. Benchmark copper futures on the London Metal Exchange climbed 0.8% to $9,486.05 per ton, while March copper futures advanced 0.9% to $4.7408 per pound.
Conversely, gold prices remained relatively unchanged as investors balanced the uncertainties surrounding potential U.S. trade tariffs and signs of a slowing economy. Spot gold steadied at $2,916.06 per ounce, with April gold futures inching up 0.4% to $2,929.74 per ounce. The metal had previously reached a record high of $2,956.37 earlier this month, fueled by safe-haven demand amid geopolitical tensions.
The recent power outage in Chile has raised significant concerns about global copper supplies, overshadowing potential demand-side impacts from U.S. President Donald Trump’s directive to investigate copper imports. The probe could lead to tariffs aimed at boosting domestic production, potentially affecting imports from key suppliers like Chile, Canada, and Mexico. Despite these potential policy changes, immediate supply concerns have had a more substantial impact on copper prices.
Additionally, a weaker U.S. dollar, pressured by soft economic data such as declining consumer confidence, has made dollar-denominated commodities more attractive to investors using other currencies, providing further support to metal prices.