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Daily Base Metals Report

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Summary

  • US equities fall on renewed trade tensions.
  • Base metals benefited from a weaker dollar, though gains were limited by strong resistance levels.
  • Gold surged above $3,350/oz, benefiting from renewed safe-haven demand.

Macro

US stocks opened lower on Friday as investor sentiment was shaken by a renewed escalation in trade tensions. President Trump announced plans to impose a sweeping 50% tariff on all imports from the EU starting June 1, citing ongoing frustration over stalled negotiations and the persistent trade imbalance between the two economies. In a further move, the President threatened Apple with a 25% tariff on products manufactured overseas, increasing pressure on the tech giant to relocate more production to the US. The announcements intensified market uncertainty, weighing heavily on risk appetite. The dollar index fell below 99.4, while the 10-year Treasury yield dropped to 4.5% as investors sought safe-haven assets.

In the UK, April retail sales surged by 1.2% MoM, marking the fourth consecutive monthly increase and the longest streak since 2004, excluding the pandemic period. The rise was attributed to increased food sales, bolstered by favourable weather conditions. Consumer confidence also improved, with the GfK index rising from -23 to -20 in May.

Japan's core CPI rose to 3.5% YoY in April, the highest level in over two years and above market expectations. The persistent inflationary pressures have increased the likelihood of the Bank of Japan raising interest rates by 25bps in July.

Base Metals

Base metals benefitted today from a weaker dollar, which was influenced by a renewed drop in risk confidence. However, the upside was also limited by strong near-term resistance levels, prompting price gains to be relatively limited. Copper held above the $9,500/t mark but struggled above the robust $9,600/t resistance level once again. Aluminium held its nerve at $2,460/t. Lead remained below the key $2,000/t threshold as zinc faced resistance at the $2,700/t level.

Precious Metals and Oil

Gold prices surged above $3,350/oz, benefiting from the softer dollar and renewed safe-haven demand amid escalating trade tensions. Silver also edged higher, trading just below $33.3/oz. Oil prices experienced slight gains, with WTI and Brent trading at $61.5/bbl and $64.7/bbl respectively. 

All price data and commentary is from 23.05.2025 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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