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Daily Base Metals Report

Markets on Standby Ahead of Fed Rate Decision

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Summary

  • Markets await the Fed meeting in hopes of assessing the impact of tariffs on future monetary policy.
  • Base metals’ performance was mixed due to uncertainty about future price trends.
  • Gold breached the significant $3,000/oz mark as global uncertainty continued to drive investors to seek safe havens.

Macro

US stocks weakened once again after recent day's gains, with the tech stocks leading the decline as markets await the Federal Reserve's decision tomorrow. Policymakers are expected to keep interest rates unchanged. More importantly, investors will pay attention to Powell's tone during the announcement tomorrow in hopes of assessing the impact of tariffs on future monetary policy. The dollar index remained low, struggling above the 103.50 mark. The US 10-year Treasury yield held at the 4.30% level. Meanwhile, German lawmakers approved a spending package that unlocks funds for debt financing in defence and infrastructure. This has bolstered the euro's performance, allowing it to maintain the 1.0900 support level against the dollar.

Base Metals

Base metals showed mixed performance. Copper remained elevated, approaching the $9,900/t level, closing just above it at $9,904.50/t. On the other hand, aluminium weakened back to the $2,650/t support level. Nickel and zinc saw mean reversion strategies take place, dropping slightly to $16,249/t and $2,963.50/t. Lead continued to edge higher, closing in on the $2,100/t resistance level. 

Precious Metals and Oil

Oil erased previous day's gains, with WTI and Brent coming back to $67/bbl and $70/bbl, respectively. Gold rallied, firmly breaching the critical $3,000/oz resistance on the back of escalating tensions in the Middle east. These moves reflect market’s increasing uncertainty regarding geopolitics, tariff implementation, and the path of monetary policy, which may keep gold prices high in the near term.

Lme Metals Price And Volume 18032025

All price data is from 18.03.2025 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.

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