Gold and base metals in action - ANZ

Analysts at ANZnoted the base metals and Gold in action overnight.

Key Quotes:

"Ongoing supply side issues in base metals failed to negate the impact of rising political risks around the world. European election concerns have spurred a rally in the USD, and reduced investor appetite in industrial metals. However, the losses were relatively limited as those underlying supply risks remained at the back of investors’ minds.

Iron ore spot prices rebounded strongly after the post Lunar New Year weakness earlier this week. Steel prices in China jumped as traders viewed the recent falls as unwarranted. Sentiment remains positive, with solid economic data increasing expectations of strong demand this year.

Gold continued to benefit from safe haven buying. Despite the stronger USD and better equity markets, rising political risks on both sides of the

Atlantic saw investors continue to bid up the precious metal. This saw holdings in the largest gold-backed ETF increase for the fourth straight day. THE SPDR Gold fund is now sitting at 818.65 tonnes, the highest level this year."