(Bloomberg) -- Base metals and iron ore climbed as the dollar dropped following US President-elect Donald Trump’s measured pick for Treasury secretary.
All major contracts on the London Metal Exchange advanced, tracking gains in stocks and other risk assets. The US currency sank by the most in more than two weeks, boosting commodities priced in it, following the nomination of Scott Bessent, a hedge fund manager, to the key role.
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Metals have endured a torrid few weeks since Trump’s election, pressured by a sharp rise in the greenback and concerns that his trade policies could hit China, the world’s top metals consumer. Investors expect Bessent to prioritize economic and market stability over more radical measures.
Traders were also tracking China’s efforts to shore up its economy after its most aggressive stimulus effort since the pandemic. The country’s central bank kept a policy-loan rate unchanged after last cutting it in September, as the authorities stayed patient in ramping up stimulus.
Copper — which capped an eighth weekly loss on Friday — rose 1.1% to $9,062 a ton on the LME as of 2:58 p.m. in Singapore. Aluminum added 1.5%, while zinc gained 1%.
Iron ore advanced 1.6% to $102.20 a ton in Singapore. Yuan-priced contracts rose in Dalian, along with steel futures in Shanghai.
--With assistance from Katharine Gemmell.
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