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Forget gold price. The real Trump rally is in copper
Forget gold price. The real Trump rally is in copper
While the gold price has given up much of its initial surge following Donald Trump's victory in the US presidential elections, staying stuck below $1,300 early on Thursday, the rally in industrial metals were only gaining momentum.
In pre-regular hours trade on Thursday copper for delivery in December jumped more than 10 cents from Wednesday trading as high as $2.5910 per pound ($5,712 a tonne) in New York.
That's up more than 12% since the eve of the election and the highest since early July last year. Copper has risen during 13 of the last 14 trading sessions, adding 23.8% in just over two weeks.
Measured from recent multi-year lows hit at the end of 2015 and in January and February this year the recovery in prices this year is even more impressive
The rally comes on the back of Trump's general support for the extractive industries and his pledge during his acceptance speech for fiscal spending geared towards rebuilding the country's infrastructure.