Dr. Copper Signals Rising Inflation Ahead

New York (Feb 10)  Performance numbers don't lie. Through the first five weeks of 2017, returns in the metals arena are running laps around those in the stock and bond markets.

Metals prices are soundly trouncing broader market equity gains. Take a look:

Quick Snapshot:

S&P 500 + 3.33%

U.S. 10-year note yield +2.42%

Palladium futures +14.31%

Silver futures +11.17%

Platinum futures +10.58%

Gold futures +6.51%

Year-to-date Data through Feb. 10

Copper Is Breaking Out

Copper prices surged dramatically higher this week. Three main factors are bolstering copper prices.

•A strike at the world's largest copper mine in Chile.

•Better-than-expected economic data out of China, the world's largest copper consumer, is supporting the price of the red metal. January data for Chinese import and export levels were higher than expected, with exports climbing 7.9% and imports up 16.7%.

•Pro-growth policy expectations in the U.S. Copper prices received a boost this week from news that President Trump said his tax cut plans are moving ahead of schedule and that an outline will be delivered to Congress by month's end.

Source: KitcoNews