1. Metals Outlook
  2. Daily Base Metals Report

US stocks fluctuated today. The Consumer Confidence Index, as reported by the Conference Board, experienced a slight uptick, increasing to 102 in May from 97 previously, exceeding analysts' expectations. Higher consumer confidence can signal potential increases in consumer spending, which often drives demand for goods and services and can contribute to inflationary pressures. The markets are pricing in the first Fed interest rate cut in November, but we think the volatile election period could lead the policymakers to wait until December. The dollar index edged slightly lower, hovering just below the 104.5 level, while the 10-year US Treasury yield edged higher, standing at 4.48%.

Following last week's volatile moves, UK markets started the week on a quieter note. In particular, copper, which swung between $10,200/t and $11,000/t, now fluctuates around the $10,500/t level. It appears that short positions have been covered, and we anticipate a continuation of the upside price trajectory from a more neutral standpoint. Still, market fundamentals add to the moderately bullish narrative in the medium term, although the near term will likely remain more volatile. Aluminium continued to strengthen following Rio Tinto's force majeure announcement on alumina cargoes, placing additional pressure on the supply side; the metal is now back above $2,700/t at $2,729.50/t. The rest of the complex followed suit, with lead and zinc edging higher to $2,343.50/t and $3,100/t, respectively.

Gold remained broadly unchanged at $2,355/oz, while silver continued yesterday's upward momentum, testing the $32/oz level. Oil climbed today, with WTI and Brent crude at $79.5/bl and $83.8/bl, respectively.

Lme Metals Price And Volume 28052024

All price data is from 28.05.2024 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.