| Base metal prices have rallied very strongly lately but are the gains sustainable? Metal Bulletin Research (MBR) has its doubts. The move started with lead and zinc, and these two are up 28 per cent and 20 per cent, respectively, from mid-March lows. But the rest have joined since late April, with copper and aluminium reaching fresh 2015 highs in recent days.
On the whole, currency markets, more so than the metal markets' own fundamentals, have been the main driving force. Better economic data out of Europe, combined with softer data from the US, has seen the dollar retreat to its weakest level in two months against the euro and other major currencies. Easing concerns about euro zone deflation and a more dovish Federal Reserve have been factors, too...............................................Full Article: Source
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