| A rally in base metals may be “overdone,” says Citi Research. The London Metal Exchange Index is up 7.2% since June 12. “However, we do not believe that current supply-(and)-demand fundamentals justify this rally and expect prices to correct lower,” Citi says.
The bank says the rally has been driven by paper-market positioning on the back of improving macroeconomic sentiment, money inflows including those from commodity trading advisers, and anticipation of more positive supply/demand conditions next year, such as zinc mine closures. ..............................................Full Article: Source
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