After staging a stunning rally, prices of precious metals gold and silver are experiencing a pullback as demand recedes. However, base metals are extending their strong gains, with a supply crunch, soaring industrial demand, and a weakening dollar fuelling the momentum.

Over the past month, copper and aluminium prices have jumped eight percent each, while zinc has gained nearly five percent. Copper spot prices have hit fresh all-time highs at $11,097 per metric ton on the London Metal Exchange (LME), while aluminium and zinc are trading near record highs in international and domestic markets.

Supply crunch boosts prices

The close of a major copper mine, Freeport-McMoRan based in Indonesia, has driven prices higher. The mine produces roughly three percent of the world’s annual copper. Wh

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