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Copper soars in U.S. on deamnd views, gold down on profit taking

Investing.com -

Investing.com - Copper soared on Tuesday in the U.S. with investors looking to a pickup in U.S. demand on expected tax cuts and infrastructure spending under the new administration and taking profits on recent gains for gold.

Gold for February delivery on the Comex division of the New York Mercantile Exchange eased 0.60% to 1,208.35 a troy ounce. Also on the Comex, silver futures for March delivery fell 0.45% to $17.108 a troy ounce, while copper futures jumped 2.21% to $2.706 a pound.

On the economic front, Markit's preliminary manufacturing purchasing managers' index (PMI) for January beat expectations as new orders expanded at their quickest pace since September 2014. December existing home sales missed expectations, but still closed out 2016 with their best year in a decade.

Trading in North American markets on Tuesday was steady as traders continued to focus on President Donald Trump for further details on his promises of tax reform, infrastructure spending and deregulation and noted the dollar index this week had touched seven-week lows, providing a buying opportunity for the precious metal denominated in greenbacks.

Trump's nominee for Treasury Secretary Steven Mnuchin's remarks that an "excessively strong" dollar can have negative short-term impacts on the U.S. economy also weighed on markets.

Mnuchin is still awaiting confirmation by the Senate, which has yet to schedule a vote.

In his latest executive order, Trump signed to formally withdraw the U.S. from the 12-nation Trans-Pacific Partnership trade deal, distancing America from its Asian allies. Trump has also vowed to renegotiate the North American Free Trade Agreement (NAFTA) with leaders of Canada and Mexico.

In a meeting with top executives of U.S. companies at the White House on Monday, the president vowed "massive" cuts in taxes and said he could reduce regulations by "75% or more" to help businesses create more jobs in the U.S. Trump also reiterated his pledge to impose a hefty border tax.

Trump plans to meet with automotive executives at the White House on Tuesday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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