Copper drifts higher on rally in tech stocks and weaker dollar

Copper extended its advance to three consecutive sessions on Tuesday, Business Recorder reported, helped by a stock market rally and a weaker dollar. The three-month contract on the London Metal Exchange, the benchmark, rose 0.1% to $14,420 per metric ton during official open-outcry sessions, after a 1.1% gain on Monday.

A technology-led surge pushed the Nasdaq index to a fresh closing high, while ING commodities strategist Ewa Manthey tied the metal's firmer tone to optimism over data centre and power infrastructure needs. S&P Global expects AI and defence growth to lift copper demand by 50% by 2040. LME copper is up 16% this year but remains below the record $14,875 touched on September 10.

Trading is thinner than usual because the Shanghai Futures Exchange is closed for China's National Day and reopens on October 8. Aluminum rose 0.7% to $3,148 a ton but remains more than 17% below its June four-year high. A softer dollar index also makes commodities priced in the currency cheaper for buyers using other money.