By Manolo Serapio Jr and Veronica Brown
MANILA/LONDON (Reuters) - Gold held near six-week highs on Wednesday, while other markets calmed down after swinging wildly following Donald Trump's shock victory over Hillary Clinton in the White House race.
Oil prices began to steady in Europe alongside the U.S. dollar, Mexican peso and stocks, having been hammered as Trump swept to victory. [MKTS/GLOB]
Trump appeared with his family before cheering supporters in New York, saying it was time to heal the divisions caused by the campaign and find common ground after a campaign that exposed deep differences among Americans.
Copper rose sharply, as Trump also spoke of a period of significant fiscal stimulus in the United States, including a project to rebuild American infrastructure.
The initial sell-off in across financial markets was reminiscent of market turmoil in June when Britain voted to exit the European Union.
"What we're seeing, very much like Brexit, is that the initial sell offs normally don't last very long, but there are longer-term things we need to bear in mind," Ashok Shah, investment director at London & Capital, said.
"We still have a huge level of uncertainty as we don't know the full level of policies Trump will roll out," he said.
A wealthy real-estate developer and former reality TV host,Trump rode a wave of anger toward the Washington establishment to defeat Clinton, a former first lady, U.S. senator and secretary of state.
Spot gold
“(Gold) will rise between 5-10 percent potentially over the next few days ... basically until the market determines what the right price of the dollar is in this new situation," Amanda van Dyke, fund manager at Peterhouse Asset Management, said
Brent crude oil (LCOc1) was up seven cents at $46.11 a barrel, after falling to $44.40, its lowest since Aug. 11. [O/R]
Trump's victory may have some supportive implications for oil prices, analysts said. For one, he has criticized the West's nuclear deal with Iran, an accord that has allowed Tehran to increase crude exports sharply this year.
"There are a lot of unknowns about what will be the Trump position in the geopolitics of the Middle East," Olivier Jakob, analyst at consultancy Petromatrix, said.
"President Obama from the start of his election worked towards a detente with Iran and we can't be sure that President Trump will continue in the same direction."
Copper on the London Metal Exchange
Wheat
In China, futures for steel and its raw materials were helped by a sustained rally in coal prices due to a shortage of the fuel. Iron ore
