Trump's Tax Cut Proposal Increases Wedge Between Gold and Copper
- The 120-day inverse correlation is at the biggest since 2003
- Bullion is heading for biggest loss in seven weeks on Comex
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Speculation about President Donald Trump’s proposed tax cuts is expanding the wedge between the precious and industrial metals.
Gold futures posted their biggest two-day loss in seven weeks amid optimism that a possible plan to cut the U.S. corporate tax rate to 15 percent from 35 percent will boost company earnings. An improving outlook for the U.S. economy is also bolstering the demand prospects for industrial metals used in iPhones, refrigerators and electrical wiring. The 120-day inverse correlation between gold and copper is at the biggest since 2003.