Aluminum breaks up from trading range

Aluminum posted sharp gains and broke out of the trading range from the last 10 sessions, says Triland Metals.

The move was initiated by a “quite strong return of Chinese participants” who “didn’t seem too much concerned” about a rate hike earlier this week while the country observed a holiday. Some investors are focusing more on strong manufacturing numbers, Triland says.

“If we add to that expectations of a rate hike from the ECB tomorrow prompting a weaker dollar, then we have all the elements of a bullish market,” Triland says. Aluminum rose as high as $2,685 a metric ton and closed in London at $2,670, up from $2,641 Tuesday.