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Copper soars to highest since July 2015 on Trump growth bets

Published 11/10/2016, 04:18 AM
Updated 11/10/2016, 04:18 AM
© Reuters.  Copper soars to 16-month high

© Reuters. Copper soars to 16-month high

Investing.com - Copper prices extended sharp overnight gains during European hours on Thursday, amid expectations that a Donald Trump presidency could unleash a flood of infrastructure spending.

Copper for December delivery on the Comex division of the New York Mercantile Exchange rallied 10.0 cents, or 4.05%, to $2.559 a pound by 4:15AM ET (09:15GMT). It rose by as much as 12.3 cents, or 4.5%, earlier to $2.591, a level not seen since July 2015.

Prices of the red metal gained 7.9 cents, or 3.34%, on Wednesday after Trump's victory speech included a pledge to spend on rebuilding America's infrastructure.

Copper futures are up almost 22% over the past three weeks as traders bet that the global economy may be gaining momentum after a long period of sluggish growth.

The metal is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.

Elsewhere in metals trading, gold rose 1%, as the U.S. dollar pulled back from a two-week high touched in wake of Donald Trump’s election victory.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

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