Below is Weekly Quote on Base Metals Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd
Metals like lead and aluminum only managed to end higher, as the base metals group continues to see a mixed set of action.
After hopes that the US Federal Reserve might slow the pace of rate increases, the metals did move higher. The gloomy US economic figures this week increased expectations that the Federal Reserve will relax monetary policy, limiting economic harm and boosting commodity demand.
As a result, the dollar eventually fell, making commodities more affordable for holders of other currencies. Gains were however limited as a result of an increase in coronavirus cases in China, which raised questions about the pace of the largest consumer nation's economic growth.
Additionally, the Yuan dropped to its lowest level against the dollar since 2008, increasing the price of products purchased in dollars by Chinese consumers.
Outlook: We expect copper to trade lower towards 644 levels, a break of which could prompt the price to move lower to 634 levels.