Uncertainty is causing China to load up on base metals, not gold

Beijing (Sept 19)  The Chinese economy is gaining strength due to containment of COVID-19 and a stimulus to shake off the effects of the pandemic and the economic slowdown, said Samson Li, Senior Precious Metals Analyst at Thomson Reuters GFMS.

 Li spoke to Kitco on Thursday Hong Kong time. Copper is at a two-year high trading and hit $6,850 a tonne on the LME. China needs the metal for infrastructure. Authorities are also worried that trade tensions could curtail imports.

 "The Chinese government authorities are going to build up some strategic reserves in certain metals while they can still import metals smoothly," said Li.

KitcoNews