Base metals to see better days in 2020

Recent rallies in metals prices, particularly in precious metals and iron ore, are likely to falter sooner rather than later. Indeed, we expect almost all metals prices to drop in the remainder of this year as global growth slows and investor sentiment sours. On a brighter note, next year, we think that a loosening of monetary policy will be the catalyst for an upturn in advanced economies. This should boost investor confidence and, in turn, give a lift to industrial metals prices, not least because we also expect the US dollar to weaken. Constrained supply is also set to bolster the prices of many base metals, especially copper. Meanwhile, the prices of gold and silver are likely to gradually give up some of their recent gains as risk aversion dissipates.