Gold in 'Sell the Rally' Mode
09/14/06 - 02:26 PM EDT
Simon Constable
The copper market tends to be among the most sensitive to an economic slowdown, notes TD's Burleton. He sees most of the base metals continuing to sell off like copper, but he's less bearish on zinc, which he says should continue to see good demand from China for use in galvanized steel products. Even while lowering its forecast for U.S. growth, the IMF upped its global growth forecast for 2006 and 2007, in no small part because of China's outlook.
If Burleton is correct, that bodes well for Canadian zinc miner Teck Cominco(TCK Quote - Cramer on TCK - Stock Picks), which was recently up 0.8% at $62.98. Shares of diversified miner BHP(BHP Quote - Cramer on BHP - Stock Picks), which majority owns the world's largest copper mine in Chile, were recently down 0.7%.
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