Copper prices gained 1.5 percent, zinc was up 2 percent, and aluminium was up 2.5 percent overnight and many of these metal prices are still holding those gains.
The major reason has been the US treasury yields, which have declined. The US dollar index is off its 20-year high as well, trading below 105 right now, and that leads to other currency holders being able to buy commodities in a better fashion there.
The Chinese data has come in better than expected as well. All the numbers that came in this week, car sales, retail sales, manufacturing, or factory activity, have been better than what the Street was anticipating. The fundamentals have been positive.
Aluminum LME stocks are at the lowest in the last 21 years.
Precious metals like gold and silver have rebounded from one-month lows that they were trading just before the US Federal Reserve’s meeting. Some buying has been seen in precious metals, and until now, it seems to be holding.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.