However, this rebound is not rooted in supply-side constraints. Chilean state miner Codelco reported a 10.1% increase in copper production in August, alleviating immediate concerns about shortages.

From a performance standpoint, copper miners have had a strong year. The Global X Copper Miners ETF (NYSE:COPX) is up 25.7% year-to-date, outpacing the S&P500, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), which has gained 22.54%.

Still, JPMorgan warned that U.S. elections could introduce significant volatility into the metals markets.

"Metals markets aren't pricing in significant risk premiums for trade-related outcomes, like higher tariffs, despite this being a concern raised by clients," JPMorgan's Executive Director of Mining Equity Research Dominic O'Kane wrote in a note, according to Bloomberg.

Yet, despite the decline since the peak in May, the long-term bullish thesis about electric vehicles (EVs) remains intact.

Copper's role in EV production—used in wiring and batteries—solidifies its position in the green energy transition. According to Rho Motion, EV sales in the U.S. and Canada continue to grow around 9% year-to-date, and while there has been some volatility in quarterly sales this year, the overall growth trajectory is strong.

IXM's head of refined metals, Tom Mackay, noted that demand for copper in EVs remains healthy despite short-term uncertainties, Reuters reports.

On the technical side, copper is still not in the clear. The metal established a low on Aug. 7, following a broader market selloff. Since then, it rose from $3.95 per pound to a new high of $4.67. Currently, it remains between $4.40 and $4.60, where a decisive break of these levels would open the doors to a more significant move—a feat that might play out after the November elections.

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Image created using artificial intelligence via Midjourney.