1. Metals Outlook
  2. Daily Base Metals Report

US stocks opened higher today. MBA Mortgage Applications, a weekly measure of nationwide home loan requests, fell by 0.2% for the week ending July 5th. The prolonged period of high interest rates continues to deter potential homebuyers as the US economy shows signs of softening, leading investors to increase their bets on the first Fed interest rate cuts in September. Forward swaps are currently pricing in almost an 80% chance of a cut in September. The dollar index increased slightly, trading just above 105.0, while the 10-year US Treasury yield remained mostly unchanged at 4.3%.

Mixed performance was observed in the base metals market, with individual metals exhibiting unique trends that seem to diverge from the copper narrative. Aluminium was below the $2,500/t mark, at $2,483.50/t, as copper remained broadly unchanged at $9,905/t. Lead was also capped by a robust resistance level, prompting prices to close below $2,200/t at $2,179.50/t. Nickel, on the other hand, weakened today, breaking a robust support level of $17,000/t, which we believe is below its fundamental fair value. The next level of support stands at $16,530/t.

Gold increased today, trading at $2,378/oz, while silver edged higher to $30.95/oz. Oil recovered yesterday’s losses, with WTI and Brent crude at $82.4/bbl and $85.4/bbl, respectively.

Image (20)

All price data is from 10.07.2024 as of 17:30

Disclaimer

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.