1. Metals Outlook
  2. Daily Base Metals Report

US stocks softened marginally by the end of the day, as earlier gains were found to be unsustainable. US CPI figure softened to the slowest level in 2 years, at 5.0% y/y; however, core inflation struggled to show comparable signs of a slowdown, growing at 5.6% y/y. Moreover, the PPI remains sticky or slightly above expectations, which continues to add pressures to consumer prices over the longer term. Markets still largely bet on a 25bps hike during the Fed’s next meeting in May while maintaining the view of cuts in the second half of the year. The dollar declined to 101.50 but found support at this level and is now trading at 101.64. The 10yr US Treasury yield remained unchanged at 3.40%; the 2yr yield also held firm at 4.00%. Friday’s data on retail sales, industrial production, and consumer sentiment should highlight the health of the other economic sectors in March.

Base metals performance was the inverse of the moves seen in US stocks; metals dipped sharply following the CPI release, but quickly regained momentum and settled higher on the day. Aluminium tested support of $2,300/t, but this level held firm, and the metal came back to close at $2,325/t. Copper's robust support at $8,800/t triggered strong buying pressure back to $8,916.50/t. Lead and zinc closed higher at $2,129/t and $2,785/t, respectively.

Oil futures remained elevated at $82/bl and $86/bl for WTI and Brent, respectively, as a tighter supply outlook squeezed prices to this year’s new highs. Gold jumped higher, testing recent highs of $2,025/oz, while silver breached the $25.00/oz level, the highs not seen since April 2022.

All price data is from 12.04.2023 as of 17:30


This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign up to get the latest market insights

We will email you each time a new report has been published.