ews News about trade negotiations between China and the US needless to say remain all important for the market and the underlying trend across the base metals seems to be upward, which suggests the market is getting a bit more optimistic about trade talks. That said, nickel and lead have been heading lower recently, but we see those moves as counter trend moves while prices correct overbought conditions.
We still expect developments in US-China trade negotiations to set the overall direction and feel supply chains are destocked so positive developments could lead to a strong pick-up in apparent demand and therefore prices.
Gold prices, along with other havens, seem to be reacting to the pick-up in optimism, which is itself fueling some pick-up in risk appetite, as seen by the record highs in US equities.
