Analysts at TD Securities have confidence in the base metals and expect prices for copper, aluminum and lead heading north.
“There’s still a bid for base metals. The dislocation between news-tone and price action is informative, as it pointed to continued appetite for metal.”
“While we suspect that the metals’ performance was supported by a round of CTA and money manager short covering, it points to a marginal bid that could well continue to help the metals’ performance in the near-term.”
“We expect that systematic trend followers will continue to support copper, with aluminium and lead likely to play catchup in the coming days should prices remain north of $1730/ t and $1875/t.”