As suggested by our report last week, base metals started on a positive note. However, residual fund selling and selling from the east once again pushed the metal prices back to the recent lows. Against the background of weaker equities and poor economic numbers from the US, the metals may fall further. However, in the absence of any major producer or consumer interests, the funds and speculators are likely to dominate the proceedings in the near term. In my personal opinion, most of the metals are undervalued especially copper and they present a long-term investment opportunity. However, during the seasonal slow down, the speculators may be tempted to drive the prices lower in the near term.
NSTL
