Gold and copper prices have experienced a significant surge due to mounting geopolitical tensions, increased gold purchases by central banks, and growing demand for copper in artificial intelligence applications. On April 12, gold prices reached a record high of $2, 400, while copper futures hit their highest level since 2022. Despite signals from the U. S. Federal Reserve regarding potential interest rate cuts, some fund managers and Wall Street analysts remain optimistic about these commodities. Kingsley Jones, founder and chief investment officer at Jevons Global, highlighted concerns about possible inflation resurgence due to the strength of the U. S. economy. He also mentioned the ongoing fiscal stimulus in the U. S. , Europe, and other countries, with government subsidies focusing on manufacturing reshoring and green energy. As copper is essential for the energy transition and is expected to benefit from the artificial intelligence boom, Jones believes these factors will continue to drive the upward trajectory of these commodities. In terms of stock picks, Jones expressed optimism about Australian gold miner Northern Star and copper miner Southern Copper.

Similarly, Kamil Dimmich, portfolio manager at North of South Capital, emphasized the interesting potential of gold, driven by geopolitical risks in the Middle East and Chinese demand. Dimmich attributed gold's recent rallies to central bank buying and retail demand, suggesting that the Chinese are investing their savings in gold instead of real estate. Regarding copper, Wall Street remains bullish due to its significance in data centers, where it is utilized for power cables, electrical connectors, power strips, and more. Jefferies projected that global copper demand by data centers will increase from 239 thousand tons in 2023 to at least 450 thousand tons per annum in 2030. Furthermore, Jefferies noted that copper demand will exceed supply, even without considering the growth in demand from data centers. Recommended copper mining stocks by Jefferies include Freeport-McMoRan, Lundin, Teck, Anglo, Glencore, and First Quantum. JPMorgan identified U. S. -listed Teck Resources as its top pick for copper, while also highlighting American miner Freeport-McMoRan as the "cleanest way" to play copper, according to most investors. JPMorgan is particularly interested in signs of progress in leaching and cost improvements at Freeport-McMoRan's North America assets. Ian Roper, a commodity strategist at Astris Advisory Japan KK, added that recent mine disruptions have caused extreme tightness in raw materials, leading to a projected decline in Chinese copper output later in the year and an increase in copper metal imports. Overall, the outlook for gold and copper remains positive, driven by various factors such as geopolitical tensions, central bank buying, and the demand for copper in AI and green energy industries.