The prices of some industrial metals eased back in February, but the bigger picture is that they broadly held on to the gains made in January. A combination of optimism about demand, notably in the US and China, and concerns over supply supported prices. Investors remain positive for now. But we are concerned that if optimism about demand were to fade, prices could fall sharply. Meanwhile, the price of gold edged up last month, despite rising expectations of a Fed rate hike as early as March. It appears that safe-haven demand, prompted by political uncertainty in the EU and a lack of clarity on the direction of US policy, bolstered gold and, to a lesser extent, silver.
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