The prices of most metals rose last month (see Chart), buoyed by ongoing investor buying and expectations of strong demand in China and the US. The decision by the Fed to keep rates on hold in January, coupled with the uncertainty around President Trump’s policies, supported the price of gold, which had a good start to 2017. Tin was the only exception, as rising stocks weighed on its price. Looking forward, we fear that in some cases prices have got ahead of fundamentals, primarily becauset we expect China’s growth to slow this year. As such, we think that prices may ease back as optimism fades.
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