By Eddie Spence and James Attwood | Updated on Oct 05, 2026 at 08:28 PM
Copper gained alongside US stocks as a rally in technology companies outweighed surging bond yields and concerns over Europe’s deepening fiscal strains.
The metal rose as much as 1.3% on the London Metal Exchange, extending an advance that began after Friday’s weaker-than-expected US employment report tempered expectations for further Federal Reserve rate hikes.
Still, bond yields resumed their climb Monday, with the 10-year Treasury yield reaching the highest since 2002. Political upheaval and fiscal concerns in Europe also boosted the dollar’s haven appeal, creating potential headwinds for metals. Higher borrowing costs can weigh on commodities by curbing investment and consumer demand, while a stronger dollar makes them more expensive for buyers using other currencies.
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Copper nevertheless drew support from the same artificial-intelligence investment boom helping propel technology stocks toward records. Massive spending on data centers and electricity infrastructure is adding to expectations for copper demand, while supply is struggling to grow amid mine setbacks and disruptions.
Prices for the red metal are consolidating near record levels after the prospect of US tariffs prompted traders to ship hundreds of thousands of tons into the country, potentially tightening supplies elsewhere.
Copper on the LME settled 1.1% higher at $14,420 a ton. Other main metals edged higher, with aluminum and zinc closing 0.9% higher. Trading activity was subdued with Chinese markets still closed for the Golden Week holiday.