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A Wave of Steel

Posted by Oilprice.com on February 22nd, 2010

China is the key to the metals markets today. And there are some important signals about this market registering in the last few weeks.

Most commodity traders have at least some passing acquaintance with seasonality - the tendency for goods' prices to strengthen or weaken at different times during the year. After all, there are times appropriate for the planting and harvest of agricultural commodities such as corn and cotton and, as a consequence, periods of relative dearth and surplus.

The London gold market has been advertising gold bargains for a while, but there haven't been many takers. And, as in many sluggish commercial sectors, dealers have had to resort to a series of markdowns in order to attract business.

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