Chinese RRR cut boosts base metals; precious metals also stronger
Metal Stocks | 2012-02-21 00:11:29
All of the precious metals and most base metals are higher early Monday, with global markets to be quieter than normal for the rest of the day with the U.S. observing a holiday, said Standard Bank in a research note.
By Paul Ploumis
LONDON (Scrap Monster): All of the precious metals and most base metals are higher early Monday, with global markets to be quieter than normal for the rest of the day with the U.S. observing a holiday, said Standard Bank in a research note.
“A Chinese RRR (reserve requirement ratio) cut over the weekend has helped the base metals to rally overnight,” said Standard Bank.
Around 8:47 a.m. EST, three-month copper on the London Metal Exchange was $51.75 higher at $8,226.75 a metric ton and aluminum was up $11 to $2,175.
“Confidence that eurozone finance ministers will give the go-ahead for Greece’s second bailout at a meeting this evening has kept the dollar at bay, allowing precious metals room to push higher this morning,” Standard added.
Further, the People’s Bank of China move on the reserve ratio “helped lift the mood on the promise of growing liquidity,” Standard continued.
Spot gold was $10.45 higher at $1,733.45, spot silver was up 27.4 cents to $33.482, and platinum and palladium were also stronger.
