Red Metal on the Rise: Copper Surpasses $13,000 per Ton, Challenges Gold and Silver

New Delhi: Copper, the red metal, is sending shockwaves through the precious metals market. On Monday, copper prices soared past the $13,000-per-ton mark—a historic high—driven by strong demand and supply concerns. Analysts are now wondering whether copper could outpace gold and silver in returns in 2026.

On the London Metal Exchange, benchmark copper surged up to 4.7%, continuing a nearly 20% rally since mid-November. According to Bloomberg, this spike reflects growing worries over supply shortages, as traders and investors respond to robust U.S. demand and potential import tariffs.

Impact on Consumer Goods
The rising copper prices are expected to push up the cost of everyday appliances such as air conditioners, mixer grinders, and cookware, as the metal is a key component in electrical wiring and electronic goods.

MCX Update
On the Multi Commodity Exchange (MCX) as well, copper maintained its upward momentum. By 11:30 AM Tuesday, prices had risen over ₹14, reaching ₹1,327.50 per kilogram—a gain of more than 1% from Monday’s close of ₹1,313.30 per kilogram.

Reasons Behind the Surge
Copper prices are being driven higher by a combination of factors: accelerating U.S. imports, fears of tariffs, and a strike at Chilean mines, one of the world’s top producers. Meanwhile, demand continues to rise, particularly for electrical wiring, data centers, and electric vehicle batteries. The imbalance between supply and demand has fueled the rally.

Copper’s Stellar 2025 Performance
While gold and silver drew widespread attention last year, copper quietly stole the show in 2025. On MCX, its price jumped 50% from ₹796 to ₹1,197 per kilogram, outperforming major indices like Nifty 100, Nifty Midcap 150, and Nifty Smallcap 250. For comparison, gold delivered approximately 70% returns and silver around 170% during the same period.

Looking Ahead: Will Copper Outperform in 2026?
As 2026 begins, the question on investors’ minds is whether copper can continue its upward trajectory and surpass gold and silver. Silver, which had dipped sharply from ₹2,50,000 per kilogram to ₹2,20,000, has regained momentum, while gold remains strong. While it’s too early to predict a clear winner, copper is clearly poised to challenge the precious metals in performance this year.