Nov 15, 2024 (MENAFN via COMTEX) --
(MENAFN - Yolo Wire) %Gold and %Copper prices are plunging as the U.S. Dollar strengthens following Donald Trump’s win in the American presidential election.
A surging greenback is pressuring a wide range of commodities globally, notably gold and copper, as traders weigh the ramifications of Trump’s return to the White House.
Gold is trading at $2,565 U.S. per ounce, its lowest level since June of this year. Copper has seen its biggest price decline since July 2022 and is now trading at $9,343 U.S. a ton.
While a strengthening U.S. currency is hurting gold’s price, copper is getting hit as traders brace for a decline in demand for the industrial metal if Trump follows through with his promise to escalate a trade war with China.
While the post-election impact has been negative, some commodities analysts see a rebound in gold’s price in coming months fueled by U.S. inflationary pressures and weakness in China’s yuan currency.
Analysts have warned that Trump’s policies are likely to increase inflation in the U.S. and the federal deficit. Gold is viewed as a hedge against inflation.
For copper, traders and analysts are hopeful that China’s government in Beijing will enact more economic stimulus measures to invigorate domestic demand, though such a scenario is not guaranteed.
The price of spot gold has declined 3% in New York trading over the past day, while copper’s price has fallen 4% on the London Metals Exchange.
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COMTEX_459835761/2604/2024-11-15T08:26:28
