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Copper extends decline from 17-month highs

Published 11/15/2016, 07:47 AM
© Reuters.  Copper futures pull back from 17-month highs

Investing.com - Copper prices were lower on Tuesday, extending its decline from the highest level since June 2015 amid speculation prices rallied too hard and too fast.

Copper for December delivery on the Comex division of the New York Mercantile Exchange slumped 5.8 cents, or 2.3%, to $2.463 a pound by 7:45AM ET (12:45GMT).

It soared to a 17-month peak of $2.734 last Friday, amid expectations that a Donald Trump presidency could unleash a flood of infrastructure spending.

Trump stated during the campaign that he would spend more on repairing aging roads, airports, ports and take on other infrastructure projects.

Prices of the red metal rallied nearly 11% last week after Trump raised the prospect of increased infrastructure spending, while recent signs of strengthening demand in China have also underpinned prices.

Copper is regarded as a leading indicator of the global economy. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.

Elsewhere in metals trading, iron ore slid 9% in Singapore to $68.58 a metric ton, extending a decline from a two-year peak of above $80.00. The price soared by a record 27% last week.

Meanwhile, zinc fell 1.9% in London, reversing earlier gains and retreating from the highest level in almost seven years.

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