Base Metals Weekly Report: Motilal Oswal

Motilal Oswal's report on Base Metals Weekly

Base metals have been trading firm and gaining strength on every retracement happened over the last couple of weeks. Metals have been rallying bets that further economic stimulus and a global post-pandemic recovery will fuel demand for the metal into next year. Prospects for a U.S. virus-relief package before the end of the year grew substantially last week after a plan outlined by Republican and Democratic lawmakers emerged as the first real chance for a compromise that has eluded party leaders and the White House for months. Meanwhile, nations across Europe are pushing ahead with fast-track Covid-19 vaccine.

Outlook

Successful vaccine news and a weak dollar index throughout November boosted the entire LME complex, with the US dollar index most recently at below 91 from 94.33 at the beginning of November.

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