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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

•    US stocks lower awaiting Fed’s preferred inflation measure.
•    Base metals broadly declined amid subdued trading sentiment.
•    Gold briefly reached record highs driven by geopolitical uncertainty.

US stocks started the trading day on the back foot at the beginning of a week that will feature the release of the Fed's preferred inflation gauge—the US PCE index, expected to ease slightly to 2.5%. The dollar edged higher against other major currencies, with the dollar index trading above the 106.6 level. Meanwhile, the 10-year Treasury yield dropped below 4.4%, trading at 4.38%. Markets reacted positively to Germany’s election results, where the Christian Democrats (CDU/CSU) won with 28.5% of the vote. A coalition between the CDU and SPD is now anticipated, following Olaf Scholz's resignation, providing some relief for European investors amid broader geopolitical uncertainty. In economic data, Eurozone inflation rose to a six-month high of 2.5% year-on-year in January, accelerating from 2.4% recorded in December, according to the final reading published by Eurostat today.

Base metals pulled back today, with broad-based declines across the complex as market sentiment remained subdued. LME copper retreated to $9,499/t. Despite some supportive factors, such as the absence of Chinese sellers, weaker arbitrage flows and a lack of fresh momentum weighed on prices. Aluminium dropped to $2,655/t, reversing some of last week’s gains as range-bound trading conditions persisted. Nickel also softened, falling to $15,430/t, as overall market interest remained muted. Zinc was among the worst performers, dropping to $2,848/t, with renewed selling pressure pushing prices lower. Meanwhile, tin declined to $33,145/t, taking a breather after its recent rally. Lead remained relatively stable but still edged lower to $1,999.50/t, unable to build on the tighter LME spreads seen last week. With volatility remaining stagnant and limited directional catalysts, base metals are still in a wait-and-see mode. Traders are looking for clearer price signals, but with no significant upside drivers emerging, downside risks remain in focus.

Gold briefly hit record highs today, testing the $2,955/oz level as geopolitical uncertainty continued to highlight its appeal as a safe-haven asset. In contrast, silver edged lower, trading below $32.3/oz. Oil prices remained mostly unchanged, with WTI and Brent trading at $70.7/bbl and $74.7/bbl, respectively.

24022025

All price data is from 24.02.2025 as of 17:30

Disclaimer

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