1. Metals Outlook
  2. Daily Base Metals Report

US stocks extended last week’s losses as elevated bond yields continue to discourage investors from putting money into riskier assets. The 10-year US treasury yield retraced slightly to 4.89% after testing 5.00% - a level not seen since 2007. Investors are getting more and more convinced that the interest rates will remain higher for longer than previously expected as central banks remain determined to keep inflationary pressures at bay. The US economy remains resilient; the annualised GDP growth figure for Q3’23, due this week, is expected to reach 4.5%, which could push bond yields higher. Elsewhere, the ECB is expected to keep the rates unchanged at the next meeting on Thursday. The euro appreciated against the dollar today, reaching 1.06. The dollar declined against other major currencies and stood at 105.84.

China is said to host a key financial policy gathering next week, discussing financial risks, including the property crisis. Speculation in regard to the talk’s outcome could bring some volatility into the market this week. The base metals complex remained broadly unchanged on Monday. Copper is seen retesting the robust support level of $7,878/t, which is the low not seen since May. A break below this level could heighten price volatility, and we might have some short covering. The metal closed at $7,972/t. Likewise, aluminium remained below $2,200/t, closing at $2,176/t. Lead and zinc held steady, settling at $2,102.50/t and $2,420/t, respectively.

Oil futures weakened amid the risk-off sentiment today; WTI and Brent traded at $87/bl and $91/bl at the time of writing. Gold and silver weakened for the first time in 5 days after the most recent rally, holding firm at $1,977/t and $23.15/oz, respectively.

Lme Metals Price And Volume 23102023

All price data is from 23.10.2023 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.