WEEK IN REVIEW: Metals echo volatile currencies

Price direction and short-term sentiment are shifting daily while holidays in parts of Europe and the late Orthodox Easter will delay business activity early next week.

This week, the rise in oil prices on reduced US supply that saw Brent crude rise above $48pb on Thursday was accompanied by a rally in prices of major industrial and precious metals. Supply constraints after a long period of reduced production combined with second-quarter pick-up in demand are boosting sentiment in some markets. But many are still looking for direction, so more volatility could be in store.

Some downward correction was seen in nickel and copper before the end of the week. But both have retained most of their recent price gains, and the contango between LME cash and three-month prices narrowed in nickel and aluminium. The backwardation in copper than has persisted since the end of January widened from $10 to $20/tonne …
Read More
Source: Metal Pages