Copper could emerge as biggest winner as AI demand, supply risks lift metals: Nirmal Bang - CNBC TV18

2026-05-22 · Source: artifical intelligence via Google News · Field: Finance & Economics — Capital Markets & Investment Management, Economic Analysis & Policy, Commodities & Energy Finance · Depth: Intermediate, quick

Summary

Kunal Shah, VP-Head of Commodities Research at Nirmal Bang Securities, forecasts copper as the top-performing commodity in the coming months, driven by increasing artificial intelligence (AI) demand and tightening global supply. Published on May 22, 2026, Shah anticipates copper prices could reach \$15,000, citing its critical role in data centers, electric vehicles, and advanced electronics, alongside long-term fundamentals, protectionism, and export restrictions from countries like Indonesia. He also expects aluminium and nickel to benefit. Conversely, crude oil prices are projected to remain under pressure due to high anticipation of a US-Iran deal, which could allow the Indian rupee to strengthen towards 94.50. Precious metals like gold and silver face short-term pressure from weak seasonal demand, though gold retains a positive long-term outlook. The dollar index is also expected to ease, further supporting commodities.

Key takeaway

For investors evaluating commodity allocations, Kunal Shah's outlook suggests prioritizing copper. Your portfolio should account for copper's strong upside potential, driven by AI demand and supply constraints, with prices possibly reaching \$15,000. Consider any price dips as buying opportunities. Simultaneously, factor in potential crude oil price weakness and a strengthening Indian rupee, which could influence broader market dynamics and currency hedging strategies.

Key insights

AI-driven demand and global supply constraints position copper as a leading commodity for significant price appreciation.

Principles

• Copper dips present buying opportunities.
• Industrial metals may outperform precious metals.
• Copper's long-term fundamentals are robust.

In practice

• Monitor copper for AI infrastructure demand.
• Consider copper's role in energy transition.
• Observe export restrictions for supply impact.

Topics

• Copper Market
• AI Demand
• Commodity Outlook
• Supply Chain Risk
• Crude Oil Prices
• Indian Rupee

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Editorial summary, takeaway, and curation by AIssential. Original article published by artifical intelligence via Google News.