SHANGHAI, Jan. 11 (SMM) – China reported economic figures for December on January 10. China's official PMI released by the NBS and China Federation of Logistics & Purchasing was 50.6 in December, up for three consecutive months, an indication of upbeat market expectation toward Chinese economy. Base metals should lack rising momentum before the Chinese New Year holiday since the macro news front will be relatively calm, but may post optimistic performance following the holiday considering that the concrete plan for urbanization development is likely to be issued.
According to recent reports of China International Capital Corporation Limited (CICC), easing monetary measures may continue with the economy rallying slowly and risks released temporarily, providing support for base metals which should trend higher in 1Q 2013. Nevertheless, investors should be wary of potential risks brought by the US fiscal problem and concentrated expiration of Chinese trust.
But if market risk aversion increases, silver and gold prices will get opportunities to rise.