Copper tests $6.10 as dollar slides, peace hopes lift demand

Copper tested $6.10 on May 6 after the U.S. dollar fell. Optimism over a possible Middle East peace deal and demand tied to artificial intelligence data-center buildouts and planned electrical grid upgrades supported prices.

The metal regained ground after a 17% advance earlier this year that reached about $6.10. Copper then fell roughly 6% to its 50-day moving average before rebounding over two trading sessions to retest the April high.

Intraday charts show a tight bull channel and four-hour momentum indicators reached overbought readings. Traders are watching price action for any short consolidation.

Since the conflict began, metals have moved more in step with equity sentiment than in their traditional defensive role, making prices sensitive to shifts in geopolitical tension and relief. Copper has outperformed gold so far this year.

Market analysts cite heavy capital spending by major technology companies on AI infrastructure, which requires copper for advanced circuitry and cooling in data centers, and planned investments to modernize North America’s electrical grid, which increase copper use in wiring and substations.

Technical levels to note include immediate resistance at the $6.10 April high, a psychological band around $6.20 to $6.25, and the longer-term record area near $6.40 to $6.50. Some traders point to a possible extension toward $6.90-$7.00 if those zones are cleared. Short-term support sits near the four-hour 200-period and the 50-day moving average around $5.76, with a momentum pivot between $5.70 and $5.90. Wider supports include March 2025 highs near $5.40-$5.50, the war lows around $5.18, the 200-day moving average near $5.24, and a monthly support band around $4.90-$5.00.

OANDA's market team noted metals have largely reacted to peace prospects and currency moves since the crisis began and wrote that a clear diplomatic resolution would likely be needed to confirm a sustained run toward all-time highs. Traders are monitoring headlines on the peace process and dollar direction for clues on whether copper can push beyond resistance.