Base metals rallied strongly on Friday, buoyed by surprisingly robust economic data emanating from key global economies. The data instilled confidence regarding the strength of worldwide demand, especially from China, resulting in a surge in buying.
Key Highlights:
- Copper: Copper prices experienced a notable increase, reflecting its sensitivity to global economic activity.
- Aluminum: Aluminum also saw substantial gains, driven by expectations of higher demand from the manufacturing and construction sectors.
- Zinc: Zinc prices followed suit, benefiting from the overall positive sentiment in the base metals market.
Market Drivers:
The positive economic data acted as a significant catalyst for the rally, overshadowing previous concerns about potential slowdowns in certain regions. Analysts noted that the strong performance of the Chinese economy played a crucial role in boosting demand for base metals.
Analyst Commentary:
Market analysts commented that the rally could be sustained if the positive economic momentum continues. However, they cautioned that any signs of weakening demand could trigger a correction in prices.
