Metals Rally on Faster Growth, Low Supply and Weak USD

The story of metal markets this week reads like a laundry list of achievements.Zinc crashed through the $3,000 barrier for the first time in a decade.Copper and aluminum reached three-year highs in London.Lead’s weekly gain is the biggest since June.Driving the gains was a combination of data showing faster economic growth, a weaker dollar and shrinking supply. Chinese capacity curbs have boosted aluminum, while stockpiles of zinc tracked by the London Metal Exchange have slumped to the lowest level since 2008.

Source: Metals Cap a Week of Superlatives as Zinc Leaps to 10-Year High – Bloomberg

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.