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"Quote - Base Metals" by Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

The weakness witnessed during the start of the week has been extended throughout, as most of the metals are on the verge of ending the week on a lower note, giving up most of the gains from the prior week.
The pullback in the prices come on the backdrop of weak Chinese trade and auto sales data, highlighting concerns over demand from the world's biggest metals consumer. Meanwhile, China's consumer sector slipped into deflation, and factory-gate prices continued to decline in July, reflecting challenges in revitalizing demand. As pressure mounted on Beijing to introduce more direct policy stimulus, apprehensions grew about China's potential entry into an era of sluggish economic growth akin to Japan's "lost decades."
On the other hand, the dollar index geared up for a weekly gain as traders anticipated prolonged stability in U.S. rates. This sentiment was reinforced by a Fed official's comments on addressing inflation concerns.
Nevertheless, the lower-than-expected rise in U.S. inflation failed to buoy market sentiment. Investor uncertainty lingered around the upcoming direction of U.S. Federal Reserve interest rates and Beijing's economic support measures.
Ultimately, a complex interplay of factors influenced global metal markets, ranging from Chinese economic struggles and policy concerns to U.S. inflation trends and the U.S. dollar.

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