Cassiar Gold Corp. (TSXV: GLDC, OTCQX: CGLCF)
Revitalizing the Cassiar Gold District in British Columbia, Canada
The copper price has risen for the third consecutive day due to market expectations that Beijing will introduce more support measures. Analysts indicate that once the results of the U.S. election are released, copper prices may increase further. Meanwhile, investors are closely watching the election results, which could have a significant impact on financial markets.
Last week, China’s monthly service sector activity expanded at its fastest pace since July, resulting in a 0.9% spike in copper prices at one point. Overall, these reports suggest that recent stimulus measures in China may be having some effect.
Investors widely expect the Chinese government to propose additional measures to aid the economy during this week’s Standing Committee meeting of the National People’s Congress. Senior Chinese officials have been hinting at the release of significant announcements.
Last month, metal prices, including copper, fell after initial optimism regarding China’s efforts to stimulate economic growth shifted to skepticism about their effectiveness.
Citigroup reported that in the last 10 election cycles, copper prices rose on election day in 9 instances. The report suggests that due to monetary easing policies by both China and the U.S., if Kamala Harris wins, tariff concerns will ease, and copper prices could temporarily rise to $10,000 per ton in the coming week.
As of 4:11 PM local time, copper prices on the London Metal Exchange rose by 0.7% to $9,759.50 per ton. Data from the Shanghai metals market indicate that Chinese inventories have fallen to their lowest level since February, leading to a 1.4% increase in aluminum prices.
In terms of gold, prices approached $2,740 per ounce as the U.S. dollar index increased. The intense competition between Democratic candidate Kamala Harris and Republican candidate Donald Trump could lead to uncertainty that may drive gold prices upward.
Deutsche Bank analyst Michael Hsueh noted in a recent report that in the short term, a victory for Harris might trigger a brief sell-off in gold. Harris’s win, which could lead to a decline in the dollar, might boost demand for precious metals in China and India, while the prospect of slowing economic growth could prompt the U.S. to accelerate interest rate cuts.
