1. Metals Outlook
  2. Daily Base Metals Report

US stocks fluctuated today following the release of the weekly labour data. Last week's jobless claims were higher than expected, with initial claims reaching 231,000 and continuing claims at 1,785,000, both hinting at a slight weakening in the US labour market. The dollar slipped below the 105.3 mark, while the 10-year US Treasury yield remained steady, just under 4.5%. Meanwhile, the Bank of England maintained its benchmark interest rate at 5.25%. Although Governor Andrew Bailey emphasized the need for more data to confirm a sufficient easing of inflation before starting monetary policy changes, his positive outlook on inflation softening led the markets to adjust their expectations for a rate cut in June. Forward swaps are now pricing in a 60% probability of the first cut next month. The USD/GBP pair fell today, trading at 0.799.

Another day of marginal market moves was seen across the base metals complex today, highlighting market uncertainty about higher price levels. Indeed, according to the latest COT report, speculative net positions are now reducing from recent highs, suggesting upside appetite might be waning. Copper once again struggled above the $10,000/t level, closing at $9,904.50/t. Likewise, aluminium remained unchanged at $2,561.50/t. Lead and zinc held firmly above $2,233.50/t and $2,905.50/t, respectively.

A weaker dollar lifted precious metals today, with gold rising to $2,330/oz and silver once again climbing above $28/oz. Oil prices maintained this week's upward momentum, with WTI trading at $79.3/bl and Brent at $83.89/bl.

Lme Metals Price And Volume 09052024

All price data is from 09.05.2024 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.