1. Metals Outlook
  2. Daily Base Metals Report

As markets digested Jerome Powell’s economic remarks, US stocks remained near record highs. In particular, the S&P 500 tested the 5600 level but struggled to stay above it. A more balanced approach from Powell’s remarks reinforced the belief that interest rate cuts will take place this year. Forward swaps are still pricing in 19bps of cuts in September, but the probability of it has increased week-on-week. In his speech, Powell emphasised that policymakers are looking for more evidence of lower inflation to increase confidence in the softening of monetary policy. However, he also stressed the importance of not cutting interest rates too little or too late, which led the market to keep the possibility of two rate cuts this year on the table. All attention will be paid to the CPI reading this Thursday. The dollar strengthened back above 105 today, following recent days of softness.

The base metals complex began the day on the back foot as markets struggled above the robust resistance levels. However, later in the day, a stronger dollar intensified risk-off sentiment, leading to a correction in prices today. While fundamentals are supporting prices from the downside, the upside is defensive. We expect metals to recover moderately in the coming days. The biggest downside pressures were felt by aluminium and lead, which tested robust support levels at $2,480/t and trend support at $2,200/t, respectively. These levels held firm, and aluminium and lead closed at $2,496.50/t and $2,194/t, respectively. Copper was marginally softer at $9,869/t. Tin was the only metal that continued to climb higher, posting the 9th consecutive day of gains to $34,350/t.

Both oil and precious metals softened following Powell’s remarks, with gold and silver falling to $2,358/oz and $30.74/oz, respectively.

Lme Metals Price And Volume 09072024

All price data is from 09.07.2024 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.