MEIR ON METALS: Fed minutes spark markets, but will it last?

Analyst Ed Meir looks at what is moving the metal markets on Thursday August 23.

Copper and general commentary: Most commodity markets advanced on Wednesday, with copper pushing to a one-month peak and extending its gains for a third straight day. Trading was heavy, with Thomson-Reuters data showing that COMEX volumes stood at 58,000 lots, more than a third above the 30-day average. Precious metal prices rose sharply as well, but the rally in energy was more muted. Surprisingly, US stocks finished mixed, although well off earlier lows. The catalyst behind the buying was the release of the Fed minutes strongly hinting that another round of monetary stimulus could be imminent if economic conditions failed to improve. Although the numbers have improved since then, they are perhaps not strong enough to dissuade the central bank from finally taking action in September. The minutes also hinted that interest rates could stay low for an indefinite period of time and would be raised subject to economic conditions...

Published

Ed Meir

August 23, 2012

16:45 GMT

London