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Daily Base Metals Report

Markets Watch US Politics Before Labour Figures

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Senior Research Analyst

Contact research Contact Industrial Commodities

Summary

  • Eurozone inflation rose to 2.1% in August on higher energy and food costs.
  • Base metals were mixed, with speculative and technical drivers injecting volatility across the complex. 
  • Gold extended its rally above $3,500/oz, silver steady near $40.8/oz.

Macro

US equities opened lower on Tuesday amid caution ahead of Friday’s nonfarm payrolls report. Treasury yields rose early in the session, with the 10-year moving above 4.3% before retreating to stabilise near 4.26%, while the dollar briefly touched 98.6 before easing back to 98.2. The ISM survey showed US manufacturing remained in contraction for a sixth month in August, with the PMI edging up to 48.7 from 48.0, though production slipped and employment continued to weaken as factories reduced headcount on softer demand. In the Eurozone, inflation accelerated to 2.1% in August, driven largely by higher energy prices and food costs, marking the first breach of the ECB’s 2% target since April. Market pricing still implies roughly even odds of an ECB rate cut by March, with consensus that the central bank will keep policy unchanged at its 11 September meeting.

Base Metals 

Base metals performance was mixed today, with strong technical drivers injecting pockets of volatility across the complex. In particular, copper tested and exceeded the previous day’s high of $9,947/t, surpassing the mid-July peak of $9,965/t and reaching $9,980/.50t driven by contract expiry. Likewise, zinc gained momentum, also nearing the recent July high of $2,880/t, while hovering just below at $2,865/t. Aluminium remains contained within last week’s ranges, closing at $2,619/t at the time of writing. Lead held steady, capped by the psychological level of $2,000/t, closing at $1,994/t. 

Precious Metals and Oil

Gold extended its record-breaking run, pushing above $3,500/oz, while silver edged higher to hold near $40.8/oz. Oil prices also firmed, supported by tighter supply signals, with WTI around $66/bbl and Brent close to $69/bbl.

All price data is from 02.09.2025 as of 17:30

Disclaimer

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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.

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