Client Portal
  1. Metals Outlook
  2. Daily Base Metals Report

Daily Base Metals Report

Read disclaimer

Back to reports

Authors
Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

 Markets Digest Softer Inflation Data 

Summary

•    Economic data reinforced easing inflation trends, giving the Fed more flexibility on rate decisions.
•    Base metals declined, with nickel leading losses.
•    Gold retreated below $2,850/oz as investors unwound positions after recent gains.

 US stocks opened higher, rebounding after yesterday’s declines as investors assessed fresh economic data. Personal income in January exceeded expectations, rising 0.9%, nearly double the previous month’s 0.4% gain, suggesting resilient wage growth. Meanwhile, personal spending fell more than anticipated, dropping -0.2% from an upwardly revised 0.8% in December—reflecting the typical post-holiday slowdown in consumer activity. Inflation data aligned with expectations, reinforcing the idea that price pressures continue to ease. The PCE index, the Fed’s preferred inflation gauge, softened to 2.5% YoY in January, down from 2.6%. Core PCE, declined to 2.6% YoY from an upwardly revised 2.9%, indicating a steady disinflation trend. With inflation gradually cooling, markets took the data as confirmation that the Fed has more flexibility to cut rates if economic conditions weaken. In response, the 10-year US Treasury yield extended its downward streak, falling to 4.2%, while the dollar index held steady at 107.3.

Base metals pulled back today, with nickel leading losses across the complex as risk sentiment deteriorated. LME nickel tumbled to $15,455/t, giving back its recent gains as selling pressure intensified. Copper also slipped, falling to $9,347.50/t, as the market struggled to hold above the $9,400/t. Aluminium declined to $2,608.50/t, retreating after its latest recovery attempt stalled, while zinc edged lower to $2,802/t, remaining in its recent consolidation range. Meanwhile, tin dropped to $31,520/t, cooling off after a strong run in recent weeks. Lead hovered around the $2,000/t mark. With volatility still subdued, base metals are seeing a lack of clear directional catalysts, leaving markets in a wait-and-see mode.

Gold declined below $2,850/oz, as a broader retreat among leveraged funds contributed to the move, with investors unwinding positions after weeks of gains. Silver followed, struggling to hold above $31.0/oz. Oil prices also softened, with WTI at $69.7/bbl and Brent crude at $73.1/bbl.

 28022025

All price data is from 28.02.2025 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.

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.

Subscribe

Select all the reports you wish to sign up for and submit your details below

Thank you for subscribing.

You should receive a confirmation email shortly. Please check your spam /junk mail folder if not received within a few minutes.

Do not forget to click the link in the confirmation message, otherwise, you will not receive any of our future emails.

This field is required
This field is required
This field is required
This field is required

Please note that we cannot email subscribers in the European Economic Area (EEA) or Switzerland, except for journalists.

(Please note that we cannot email subscribers in the European Economic Area (EEA) or Switzerland, except for journalists.)
You must agree to our terms and conditions before submitting the form
* Mandatory fields