The nomination of Scott Bessent as Treasury Secretary by President-elect Donald Trump has caused a significant decline in the US dollar, resulting in a surge in base metals and iron ore prices.
This positive shift in market sentiment has led to gains in all major contracts on the London Metal Exchange. The drop in the dollar has made commodities priced in the currency more appealing, contributing to the upward momentum in the metals market. This aligns with broader trends in stocks and other risk assets, indicating a growing optimism among investors.