It seems like the current financial market structure is now up for overhaul, with metals taking the center stage. Leading metals like gold, silver, and copper have now assumed a new role, leading the market charge, as demand for these assets continues to rise. Copper price has hit a new high of $10,225; however, it’s down 2%, sitting at $10,125 at press time. The fact that copper has risen dramatically cannot be denied. The metal’s usage in diverse energy circuits has led the copper price to experience new peaks, giving it a new status, a term referring to copper as the “new gold for energy sectors.” Is copper truly a metal worth banking on?

Also Read: Gold Price Breaks $3,800: Where Does It Go From Here?

Why Is Copper Rising?

The demand for copper is on a rapid rise, fueled primarily by factors such as its usage in electricity, energy, and digital economy sectors. These areas are making extensive use of copper lately, making it another leading metal besides gold and silver to bank on. Per Rashad Wadhwa, a seasoned market expert, the copper price is rising as demand tailwinds continue to deploy copper as their main connecting source to manufacture vehicles and sustainable green power energies.

“Demand Tailwinds. Energy Transition: Electric vehicles consume 80–100 kg of copper per car, nearly 4x that of internal combustion vehicles. Green Power: Each megawatt of solar power requires ~4 tonnes of copper; offshore wind needs nearly 10x more.”

Moreover, the exploding AI data center demand is also aiding the copper price surge, with projections of the red metal hitting a new high soon.

“Data Centers. AI-driven hyperscale data centers add 15–20% incremental copper demand growth annually, mostly from cables, transformers, and cooling infrastructure. Global Demand Growth. Analysts project copper demand to rise from 26 Mt in 2024 to 36 Mt by 2035. A CAGR of ~3%.”

In addition to this, the recent supply crunch issues related to the Grasberg September mine accident have also played a pivotal role in amping up the copper prices.

“Supply Crunch. Mine Accidents: Grasberg’s September 2025 accident removed nearly 400,000 tonnes from the expected supply. Ore Grade Decline. Chile, which supplies 25% of the world’s copper, faces ore grades dropping from 1.2% in 2005 to <0.7% today…. Why is the Copper Price Rising Today? Copper futures surged to a two-month high above $4.85/lb after Freeport declared force majeure at Grasberg. Which supplies 3.2% of global copper, 30% of Freeport’s copper output, and 70% of its gold. Along with Hudbay’s Peru mine halt, the disruptions underscore tight supply and rising price risks.”

New Price Projection for the Red Metal?

Experts are now projecting a new high of $4.50 for copper, with the metal ending the year on a new ATH of $5.

“My outlook for #Copper for 2025 (not knowing what Trump would do to it)—first half, trade between $4 and $4.50. Second half, trade between $4.50 and $5 and finish the year on either side of $5.”

Also Read: Silver Price Prediction: How High Is Silver Planning To Surge?