In a note to investors, Terra Capital portfolio manager Matthew Langsford said commodities were set to benefit from a Trump presidency, noting that base metals such as copper, nickel, aluminium and lead had already posted visible gains.
Mr Langsford pointed out that copper reached a 15 month high following the result of the election.
“The repercussions of the US election result are supportive of an improving demand outlook for commodities given infrastructure spending, potential tax cuts, rising inflation etc,” said Mr Langsford.
“While the exact pathway to resources return to favour is unclear, our view is that the upwelling in some commodities was a relief rally and that is likely to continue and broaden into a wider recovery for commodities generally.”
Industrial metals had a “relatively weak month”, Mr Langsford said, though iron ore ended the month on a high of $63.10 per tonne, and both coking and thermal coal saw increases of $75 and $40 respectively.
“Gold was weaker on the back of a broadly stronger US dollar with spot falling 4 per cent to US$1,272 per ounce,” Mr Langsford said.
“Gold traded-up sharply on Wednesday – pre-election result – trading above US$1,330 per ounce before giving up most of its gains, as a victory speech from US President-elect Donald Trump helped the dollar rebound.”
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