LONDON, Aug 16 (Reuters) – Zinc prices surged to their highest in almost a decade on Wednesday while aluminium and copper hit their highest since 2014 as rises across most industrial metals triggered pre-set buy orders and a wave of speculative buying.

 “Momentum funds are buying the strength, piling in as the price rises,” said a metals trader in London. Forward selling by producers keen to lock in a high price was limiting gains, he said.

The rallies had been supported by expectations of strong global demand and tight supplies, said Danske Bank analyst Jens Pedersen. “(But) these levels are likely too high from a market fundamental point of view,” he said.

LME ZINC: Benchmark zinc on the London Metal Exchange closed up 5.4 percent at $3,119 a tonne, on track for its biggest gain since November and rising above the key technical level of $3,000 for the first time since October 2007.

 

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