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Daily Base Metals Report

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Authors
Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Summary

  • Geopolitical uncertainty surrounding US-Russia talks on Ukraine, held without Kyiv, fuelled safe-haven demand, supporting gold near record highs.
  • Appetite for base metals was muted, leading to modest price moves across the board.
  • Rising wage pressures in the UK complicate the BoE’s rate-cut outlook, adding uncertainty to its monetary policy path.

US stocks declined at the open as geopolitical tensions took centre stage following US-Russia talks in Riyadh, which excluded Kyiv, raising concerns among European allies. European leaders reiterated their commitment to supporting Ukraine amid uncertainty over Washington’s long-term stance and Europe’s ability to sustain military aid. On the economic front, the New York Empire State Manufacturing Index rebounded sharply in February, rising to 5.7 from -12.6 in January, suggesting improved business conditions in the sector. In France, annual inflation accelerated to 1.7% in January, surpassing market expectations of 1.4% and up from December’s 1.3%, driven primarily by higher services prices. Meanwhile, UK wage growth remained strong, with average earnings rising by 5.9% in the final three months of 2024, marking the third consecutive month of increasing wage pressures. This persistent growth complicates the Bank of England’s plans to begin cutting interest rates in the near term. The dollar strengthened against the euro and sterling, lifting the dollar index closer to 106.9, while the 10yr US Treasury yield increased and stood above 4.5%.

Another day of mixed market sentiment was seen among the base metals complex, as markets struggled to find a sense of direction for prices. This resulted in moderate moves across the board today. Copper opened on the back foot, testing prices below the $9,400/t support level; these prices failed to hold prompting markets to come back above this level to $9,472.50/t. Aluminium strengthened, breaching the robust resistance level of $2,650/t, but struggled to break a February high, settling at $2,668/t. Lead and zinc edged slightly higher, with the latter cautiously approaching the $2,900/t level. 

Gold edged higher, nearing record highs once again, trading just below $2,930/oz. Silver followed, rising to $32.65/oz. Oil prices also climbed, with WTI at $71.3/bbl and Brent crude at $75.3/bbl.

Lme Metals Price And Volume 18022025

All price data is from 18.02.2025 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.

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