By Allen Sykora
(Kitco News) -- Traders in the base-metals complex appear to remain in a “buy the dip” mode and there does not appear to be a serious trigger to induce a long-lived round of selling, even if the market is in a “somewhat overbought” condition, says Edward Meir, analyst with MF Global.

Markets got supportive news overnight when the Bank of Japan said it would pump funds into its struggling economy and keep interest rates near zero, with a similar announcement expected from the U.S. Federal Reserve next month.

“We suspect the short-term trend is higher still, although given the extent of the gains, we would suggest that the markets are rather overextended,” Meir says.

By Allen Sykora of Kitco News; asykora@kitco.com

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