Despite the unrest and uncertainty that we are seeing in Europe as a result of the crisis in Greece, markets have continued to trade in positive territory throughout the week. However as markets increase, buyers in the physical market become more reluctant to follow the LME.
As the Australian dollar has seen a rise of over 3c over the last week, local prices have been capped in Australian dollar terms.
Please see the following article for your perusal;
Base Metals Mostly Higher; Thin Trade Seen By Rhiannon Hoyle Of DOW JONES NEWSWIRES
Base metals are mostly higher in quiet trade on the London Metal Exchange Monday, supported by a stable euro and improved technical picture following a positive session in Asia. Industry participants, though, appear somewhat divided over short-term direction for the metals as world financial markets continue to look to the debt crisis in Greece, and across the euro zone, for cues.
Demand for risk assets improved after euro-zone finance ministers approved Greece’s next tranche of aid, however there have been some fresh jitters Monday after Standard & Poor’s Ratings Services warned that a debt rollover plan for Greece could amount to a default. The move has put fresh pressure on the single currency, which may subsequently weigh heavily on the dollar-denominated metals should the greenback gain further ground. Commodities priced in dollars tend to have an inverse relationship to the greenback, as any rise in the U.S. currency makes them more expensive to buyers elsewhere.