Base metals are expected to remain under pressure in the near term, weighed down by a confluence of factors. A strong dollar continues to exert downward pressure, making metals more expensive for buyers using other currencies.
Adding to the bearish sentiment is weak economic data emanating from China, a major consumer of base metals. Concerns about slowing growth in the Chinese economy have dampened demand expectations.
Furthermore, ample supply across various base metals is contributing to the downward pressure. Increased production and existing stockpiles are keeping prices subdued.
Analysts anticipate continued volatility in the base metals market as these factors persist. Investors are advised to exercise caution and closely monitor developments in the global economy and supply-demand dynamics.
Key Factors Influencing Base Metal Prices:
- Strong US Dollar
- Weak Chinese Economic Data
- Oversupply in the Market
The outlook for base metals remains uncertain, with potential for further price declines if these pressures intensify.
