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Copper topples as Trump triumph triggers fear over slowdown in energy shift

Copper prices toppled on Wednesday as success for Republican politician Donald Trump in the U.S. governmental election spurred concerns that significant electrification efforts would be rolled back, dampening demand for the extremely conductive metal.

Three-month copper on the London Metal Exchange (LME). fell 2.3% to $9,518 per metric load by 1111 GMT. It has. dipped below the 21-day and 50-day moving average and is the. worst performer of the base metals complex.

The copper market is pricing in the long-lasting instructions of. Trump's policies, a trader source stated.

Trump stated he would rescind all unspent funds under the. Inflation Decrease Act (INDIVIDUAL RETIREMENT ACCOUNT), the Biden-Harris administration's. signature climate law to decouple the worldwide supply chain from. China.

The IRA includes hundreds of billions of dollars in. aids for electric lorries (EV), solar and wind energy to. increase production of strategic minerals in your home. It was seen. as a reward boost for financial investments in lithium, copper and. nickel outside China.

A Trump success might likewise derail U.S. policy in. resource-rich Africa. Biden's administration previously planned to. near double its financial commitments in the copper belt of the. Democratic Republic of Congo (DRC), the world's second biggest. copper producer.

If whatever got thwarted, it's time for us to. re-evaluate the copper demand supply expectations, the source. included.

For other metals, LME aluminium dropped 0.9% to. $ 2,636 a ton, nickel increased 0.1% to $16,140, zinc. lost 1.9% to $3,044, lead rose 0.3% to $2,033 and tin. fell 1.5% to $31,850.

Pushing metal prices is a stronger greenback. The dollar. index jumped to a four-month high as investors returned. to so-called Trump trades, making greenback-priced metals more. expensive for other currency holders.

(source: Reuters)