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Daily Base Metals Report

Cautious Calm Before the Fed

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Summary

  • Fed in focus as markets await policy cues.
  • Base metals broadly lower.
  • Gold drops on profit-taking.

Macro:
US equities opened firmer on Tuesday but failed to hold early gains, as markets tread cautiously ahead of the Fed’s rate decision due later today. Consensus expects no change, with the target range likely to remain at 4.25–4.50%, though positioning remains vulnerable to any hawkish tilt in the statement. The dollar index held steady below the 99.5 mark, while the 10-year Treasury yield extended its decline, slipping below 4.30% as duration demand builds ahead of potential policy clarity.

Base Metals:
Base metals were broadly weaker, giving back recent gains amid a risk-off tone and pre-Fed positioning. Aluminium led losses, falling to $2,383.50/t, while copper dropped to $9,415/t after a failed attempt to consolidate above resistance. Nickel slipped to $15,555/t and zinc edged lower to $2,618.50/t. Tin also retreated, trading at $31,655/t, paring back from recent highs. Lead was the lone gainer, rising modestly to $1,930.50/t in a low-volume session.

Precious Metals and Oil:
Gold eased to $3,385/oz as traders took profits following yesterday's surge, while silver followed suit, retreating to $32.60/oz. Oil prices remained under pressure, with WTI and Brent down to $58.5/bbl and $61.5/bbl respectively.

Lme Metals Price And Volume 07052025 (1)

All price data is from 07.05.2025 as of 17:30

Disclaimer

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