Jul 12, 2016, 09.03 PM | Source: CNBC-TV18 Zinc could gain 10%...

Jul 12, 2016, 09.03 PM | Source: CNBC-TV18
Zinc could gain 10% from here; long on precious metals: SocGen

Despite the unreasonable run-up in precious metal prices, Robin Bhar of Societe Generale prefers to stay long on them considering global economic and political uncertainties.

Q: Zinc and nickel is something that really has been gaining up and we have seen a lot of smart hot money move into these couple of metals. How much of a further gain would you see in these?

A: I think we can expect some further gradual gains admittedly some of the gains have come too quickly because of being based on some buying speculative activity jumping on the bandwagon. So we should expect maybe prices to maybe level off. I think in the fourth quarter when we should see physical demand picking up after the slow summer period, we could see some further gains particulary in zinc and nickel because of an ongoing supply constraints.

We are seeing some closures of zinc mines and in nickel we have the threat of mine closures in the Philippines to add to the already existing export ban by Indonesia. So, we would expect further modular gain certainly in the last quarter of this year

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