Despite base metals prices already nearing pre-virus levels, we think that the rally has further to run. The key factor underpinning our positive outlook is the planned policy stimulus in China, much of which will take the form of infrastructure spending. Iron ore and steel prices will also benefit from increased Chinese demand, but a gradual rise in supply should still send iron ore prices a little lower in the years ahead. Meanwhile, the price of gold is likely to remain elevated for some time yet given that real yields are set to remain low.
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