- The current copper spike may not last, but it shows copper’s long-term potential, especially if part of the announced infrastructure program materializes.
- Unlike copper, other metals aren’t in a sweet spot due to unlimited supply, and recent and large price increases.
- Gold is the riskiest of all metals, especially now with no more election uncertainty, a stronger dollar, and the expected FED action in December that will have us seeing higher interest rates.
In the last couple of weeks, metal prices have moved.
Copper has made an historic surge of 21.5% in the last two weeks, while gold fell 7.5% from its peak.
As Trump won the election, the expectation of intensified construction and increased investments in infrastructure have pushed copper prices higher while gold suffered as the world didn’t come to an end. The short term moves in metal prices aren’t that significant as they are influenced mostly by speculators, but an analysis can show us where the long-term risks and opportunities lie. More →