Even though prices of metals have declined recently, rising safe-haven demand for precious metals amid uncertainty related to economic growth, and industrial demand for other metals, should drive the performance of many metals and mining stocks in the coming months. So, Wall Street analysts expect mining stocks Rio Tinto (NYSE:RIO), Vale S.A. (VALE), and Teck Resources (NYSE:TECK) to rally in the coming months. Read on for a closer examination of these stocks.Metals prices have declined recently from their sky-high levels. China’s slower economic growth over the past few months and decrease in demand for steel, among other factors, is partly responsible for the price decline.
Nevertheless, an increasing demand for precious metals as a haven amid growing uncertainties surrounding the global economic recovery and an increasing need for other metals for construction and infrastructure activities should benefit many metals and mining companies. In addition, the $1 trillion infrastructure bill passed by the Senate on August 10 is expected to boost the demand for metals and mining products.
So, Wall Street analysts expect metal and mining stocks Rio Tinto Group (RIO), Vale S.A. (VALE), and Teck Resources Limited (TECK) to rally by more than 30% in the near term.