Copper climbs to another seven-year high as investors chase riskier assets

• Copper continues its upward march while gold slips further below $1,800/oz. on growing optimism for an end to the coronavirus pandemic and the continuation of China's strong economic recovery.
• London copper (HG1:COM) rose as much as 2.6% to $7,692.50/ton, the highest since March 2013 and heading for the biggest monthly gain since 2016.
• "Robust price rallies in industrial commodities like copper point to an ongoing rotation from a risk-averse to risk-on asset market regime," Citigroup analysts say.
• The latest data shows China's November manufacturing purchasing managers index at 52.1 vs. 51.4 in October and 51.5 expected, and non-manufacturing PMI came in at 56.4 compared to 56.2 last month and 56.0 expected; the official manufacturing PMI reading was the highest since September 2017, while the mon-manufacturing PMI was the highest reading since June 2012.
• "Macro factors are driving copper trading," Chinese brokerage Jinrui Futures says. "The market sentiment is really bullish right now amid a combination of vaccines, economic recovery, and a smooth U.S. presidential transition."
• "The current weakness of gold is all the more remarkable given that the U.S. dollar is likewise weak," says Commerzbank's Carsten Fritsch. "After the price fell below the support level at $1,800 on Friday, the technical picture became even more gloomy, which no doubt has prompted further short-term-oriented investors to withdraw."
• Potentially relevant tickers include FCX, BHP, RIO, VALE, OTCPK:FQVLF, TECK, HBM, SCCO, OTCPK:GLCNF, OTCPK:GLNCY, OTC:ANFGF
• ETFs: JJCTF, CPER, JJC, COPX, GLD, IAU, PHYS, SGOL, UGLDF, BAR, UGL, GLDM