Base metals analysts at BNP Paribas trimmed forecasts for growth-sensitive metals like copper, nickel and aluminum but still sees 5-6% gains next year.
“In the short term, base metal prices are likely to continue to be driven largely by sentiment about the euro-zone crisis, economic prospects in China, the fiscal cliff and the shape of fresh quantitative easing measures in the U.S., and by associated moves in the U.S. dollar,” said BNP Paribas analyst Stephen Briggs. “Our house view on these issues is fairly positive, with the dollar consequently expected to weaken. This leads us to expect base metals to rally in the coming weeks and into early 2013.”
I posted a bullish copper chart on Nov 9 and it has gained 3% since then. A continued rise would be a great indication for risk trades.
