1. Metals Outlook
  2. Daily Base Metals Report

US stocks opened higher today, with the Nasdaq and S&P 500 hitting record highs. Newly released US CPI data for April showed that headline inflation softened from 3.5% YoY to 3.4% YoY, while core inflation eased from 3.8% to 3.6%. This development fuels optimism that the Fed might lower interest rates in September. Additionally, US retail sales data for last month came in unexpectedly flat, with higher gasoline prices diverting consumer spending from other goods, indicating a slight pullback in consumer activity. Following these reports, the dollar index fell, trading below 104.5, and the 10-year US Treasury yield dropped to 4.35%.

Base metals opened on the front foot, led in large by copper, as it responded to the tightness seen on the Comex exchange. The July contract jumped to an intraday high of $5.02 per pound yesterday, creating a large premium with the LME contract. This appetite might prompt copper prices to remain elevated in the near term. As of today, copper opened higher to test the $10,400/t but erased those gains in the latter half of the day back below the robust resistance of $10,260/t. Likewise, aluminium strengthened, but a lack of appetite above the $2,600/t resistance prompted prices to return to settle below this level. Lead and zinc remained elevated.

The drop in Treasury yields helped propel prices of precious metals upward, with gold nearing a record high at $2,380/oz and silver advancing to $29.35/oz. Oil prices, however, softened, with WTI and Brent trading at $78/bl and $82.4/bl, respectively.

All price data is from 15.05.2024 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.