The Comex copper price built on yesterday’s surge to reach a 17-month high Thursday, November 10, amid a combination of the US presidential results and a heavy return of bullish investors following LME Week.
Copper for December settlement on the Comex division of the New York Mercantile Exchange jumped 6.6 cents or 2.7% to $2.5255 per pound. Earlier this session, the contract touched $2.5910, the highest since June 2015.
Comex gold for December delivery inched up $2.10 or 0.2% to $1,275.60 per oz. Trade has ranged from $1,273.30 to $1,292.50.
The red metal has pushed higher for six consecutive session after market participants met in London for LME Week and left the annual gathering expecting 2017 demand to improve.
Combined with strong US and Chinese labour and manufacturing data released over the past month, investors are growing optimistic that prices can recover throughout the next year.
“Our own view has been quietly bullish for some time now,” Metal Bulletin analyst William Adams said. “The strength of the recent rally suggests sentiment has turned aggressively bullish and shorts have had to cover quickly into a fast rally, adding fuel to the rally.”
The run-up in prices surprised many market participants who had expected downward pressure after Donald Trump pulled off a stunning victory in the race for US presidency.
But Trump’s promise to spend massively to overhaul the America’s crumbling infrastructure will boost demand for metals, market observers reckoned.
“Even though there may have been catch-up potential for metals prices, and above all for copper, we regard the latest price rise as exaggerated, especially as it was presumably driven in part by speculation,” Commerzbank said.
In data, US weekly unemployment claims between October 27 and November 3 came in at 254,000, better than the forecast of 267,000. Later natural gas storage figures are due for release.
Meanwhile in American markets, the Dow Jones industrial average and S&P were up 1.4% and 1.1% respectively, while the dollar strengthened by 0.2% to 1.0892 against the euro.
In other commodities, light sweet crude (WTI) oil futures on the Nymex slipped 74 cents or 1.6% to 44.53 per barrel, while Comex silver for December settlement was recently trading at $18.585 per oz., up 20.7 cents.
(Editing by Tom Jennemann)