Friday, 12 February 2016

Commodity Trading Tips on Base Metals

Copper settled up 0.2% at 304.75 after U.S. Federal Reserve Chair Janet Yellen stressed that U.S. interest rates would rise gradually, sending the dollar lower. Comments from the U.S. Federal Reserve's chairwoman, Janet Yellen, that tighter credit markets, volatile financial markets and uncertainty over Chinese economic growth have raised risks for the U.S. economy also undermined confidence. China is the world's largest consumer of copper, accounting for nearly 50 percent of global copper demand estimates at 22 million tonnes this year.

Nickel settled down -3.6% at 522.6 as fears for global growth sparked by worries about a potential financial crisis and uncertainty about demand in China weighed. LME Nickel tumbled 3.7 percent to $7,590. Earlier in the session it hit a 12-year low at $7,565 a tonne. Goldman Sachs has cut its 3- and 6-month nickel price forecasts to $8,500 a tonne from $10,000 and the 12-month forecast to $8,500 from $11,000. The main upside risk is that Chinese demand does pick up more than expected, and supply curtailments are quick and deep.
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