Comex copper vaults to 14-mth high in post-election surge

The Comex copper price eclipsed a one-year high Wednesday, November 9 amid Donald Trump upsetting Hillary Clinton in the US presidential election.

Copper for December settlement on the Comex division of the New York Mercantile Exchange surged 5.9 cents or 2.5% to $2.4390 per pound. Earlier this morning, the contract jumped to $2.4655 per pound, the highest mark since September 9, 2015.

Comex gold for December delivery rose $28.70 or 2.3% to $1,303.20 per oz. The metal is enjoying its biggest rally since the UK voted to exit the European Union.

Overnight, stock futures crashed and the Mexican peso plunged to a two-decade low as Trump’s odds improved throughout the evening.

The CBOE volatility index soared 40% and the dollar sunk to a one-month low before recovering and recently trading at 97.94 on the dollar index.

“In the base metals space, we had steep falls in early Asian trading, but in a stunning turnaround, we are now slightly higher,” Edward Meir, an analyst at INTL FCStone, said.

Trump’s promise to spend massively to overhaul the country’s crumbling transport, telecommunications, water supply and electricity systems will boost demand for metals, market observers said.

Now investors await to see how the election affects the US economy and if the Federal Reserve alters its asset-buying strategy. Currently, 72% of market participants are expecting the policy-board to lift rates next month – the last such meeting before the year concludes.

Economic data out showed some improved Chinese data with the CPI climbing 2.1 percent, but PPI leap up to 1.2 percent from 0.1 percent, it was expected to come in at 0.8 percent. Japan’s economic watchers sentiment climbed to 46.2 from 44.8. Later there is data on US wholesale and crude oil inventories. The EU is publishing economic forecasts and UK’s Monetary Policy Committee member Andrew Haldane is speaking – see table below for more details.

Here in the US, final wholesale inventories and crude oil inventories are slated for release.

Meanwhile in European markets, Germany’s DAX and France’s CAC-40 were down 0.9% and one percent respectively, while the dollar softened by 0.2% to 1.1039 against the euro.

In other commodities, light sweet crude (WTI) oil futures on the Nymex fell 15 cents or 0.3% to 44.83 per barrel, while Comex silver for December settlement was recently trading at $18.755 per oz., up 39.9 cents.

(Editing by Tom Jennemann)