Investor sentiment improves

Base metals prices rose strongly this week, in large part owing to renewed investor interest. Data suggesting persistent weakness in China’s economy are fostering hopes of additional stimulus measures. In contrast, gold prices slipped as safe-haven demand waned and US bond yields rose. Oil prices appear to have stabilised for now, pending clearer signs that US shale output is likely to fall later in the year. Meanwhile, many agricultural prices continued to fall as prospects for forthcoming harvests improved.