Copper rallies hard on Trump infrastructure hopes, China demand

Comex copper futures extended its upward trajectory and reached the highest levels since June 2015 on Friday, on track to book the biggest weekly rally in 35 years.

The red metal built on to yesterday’s gains and now jumps almost 7% to trade around 2.71 levels, as the sentiment remains underpinned amid resurgence of strong demand from the world’s top metal consumer, China.

Reuters reports, “Copper demand from China's power grid sector, which accounts for nearly half its consumption, surged 33 percent in the first eight months of the year.”    

While Trump’s soothing victory speech, which emphasized the need for fiscal spending and infrastructure growth, remains the underlying reason for the extensive rally in copper.

Copper prices are rising for the seventh consecutive session and up more-than 15% so far this week.