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Quote on Base Metal By Mr. Saish Sandeep Sawant Dessai, Research Associate- Base Metals, Angel One Ltd

The industrial metals pack witnessed a rebound in the previous week. Except for LME Zinc, all the other metals ended on a positive note, with LME Nickel being the top gainer.

A pullback in the dollar assisted the metal prices to recover from their lows. A weaker greenback makes dollar-denominated metals less expensive for other currency holders. Additional stimulus measures from China, the world's largest purchaser of metals, would be another aid that would limit further decline.

Recently, the metal prices were under pressure as the US dollar rose to 20-year highs which hinted at a recession given the sky-high inflation and rapidly increasing rates coupled with slowing economic growth which kept the gains in check.

The US Fed's interest rate decision is the next catalyst that investors will watch for after the ECB raised interest rates for the first time in more than ten years. According to two of the Fed's hawkish members, another 75 basis point increase is likely.

 
Outlook: US Fed’s rate hike anticipation to be a major headwind, which would limit the gains in metals.

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