Weekly Base Metal Report by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One
"Weekly Base Metal Report" by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd
The lost momentum in the previous week seems to come back, as most of the industrial metals ended on a higher note, except for Aluminium, which was nearly 1 percent down. New COVID restrictions in the top user China and a stronger dollar, on the other hand, were what kept the pressure on the base metals.
While local authorities in the southern Chinese city of Guangzhou temporarily cordoned off the area, the capital city of China saw an increase in COVID-19 instances. The dollar stood near to a three-month low as a result of the prospect that the Federal Reserve might pause US interest rate increases, eventually leading to a weekly loss.
As the value of the dollar declines, industrial metals become more affordable to those using other currencies. Base metal prices increased as the Federal Reserve's minutes from its November meeting suggested that the pace of interest rate increases may soon halt, base metal prices moved higher.
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