BASELINE VIEW – INDUSTRIAL METALS:
Most base metal prices increased in August due to expectations of further economic support being provided to the Chinese economy, which supports the demand outlook. Demand-side dynamics will remain the main driving factor of base metals over the near term, although stockpiles for most remain
low to keep a floor in place.
BASELINE VIEW – PRECIOUS METALS:
Longer-term outlook remains bullish, but concerns of re-accelerating inflation on US economic resilience are translating into mounting bets of a November US rate hike, which will create volatility for gold and may delay its recovery back to July highs.