Silver is perking up, copper just hit a record high, and gold is flat.
Silver futures (SI=F) and copper futures (HG=F) have been rising hand in hand lately, while gold futures (GC=F) have fallen.
The metals market is drawing a line between safe haven demand and physical infrastructure demand, and right now AI development is manifesting itself on the copper and silver side.
Copper is the strongest indicator. The metal hit an all-time intraday high on Tuesday and is up about 55% since the March 30 stock market low.
The movement is broader than copper. The Bloomberg Industrial Metals Index, comprised of aluminum, copper, nickel, lead and zinc, is advancing toward its highest level since 2022, reinforcing the idea that the market is revaluing the physical inputs behind AI development.
The penultimate day of March has become a useful dividing line between markets. It marked the point at which risk appetite was restored, AI trading began to take off again, and the rally went far beyond software. The PHLX Semiconductor Index (^SOX) rose nearly 70% in 29 trading days through Monday’s close, its best stretch since March 2000.
Data centers don’t just run on chips. They need power, cabling, cooling systems, backup equipment, network upgrades, and physical construction. Copper is the obvious beneficiary. Silver’s role is less obvious to investors in general, but it also has important industrial uses, especially in electronics, electrical equipment, and solar energy.
The Trump-Xi summit may give the move a backdrop of Chinese demand, but the bigger story is already visible on market charts: AI is becoming a building cycle.
Jared Blikre is Yahoo Finance’s global markets and data editor. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.
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