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Daily Base Metals Report

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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

  • Trump’s softer tariff tone steadied sentiment, but markets remain hypersensitive to policy shifts.
  • LME spreads stayed volatile, showing lingering tightness despite easing prices.
  • Precious metals corrected as profit-taking set in.

Macro

US equities started Friday on a cautious footing, as fresh developments in trade rhetoric and yield dynamics unsettled momentum. President Trump signalled that the aggressive 100% tariffs on China may not be permanent, helping to ease some tension around the trade horizon. Meanwhile, the dollar strengthened, pushing the index above 98.5, and the 10-year Treasury yield rebounded after dipping below 4.0%, recovering towards established resistance. The more hawkish pricing in yields and dollar strength point to a fragile market mood that is highly sensitive to policy and geopolitical surprises.

Eurozone inflation held at 2.2% in the region’s final print, underscoring the ECB’s incentive to maintain a steady stance in the near term.

Base Metals

Spreads remained the key focus across the LME complex as volatility persisted into the week’s close. In copper, the cash-to-3-month spread widened close to $26/t, signalling a partial return of nearby tightness, while the 3-month price eased below $10,580/t after briefly testing resistance near $10,700/t earlier in the session. Aluminium spreads also widened, moving to $18/t, with the 3-month price consolidating around $2,770/t. Zinc’s cash-to-3-month premium narrowed to $116/t, coinciding with a retreat in the 3-month contract to around $2,930/t, suggesting a modest easing in nearby tightness following the recent spike.

Precious Metals and Oil

Precious metals saw a sharp correction as investors moved to lock in profits following recent record-breaking gains. Gold retreated from its intraday high above $4,375/oz to trade below $4,250/oz, while silver slid from near $54.5/oz to around $52/oz. The move reflects a cooling of speculative positioning amid firmer dollar sentiment and stabilising Treasury yields. With the Fed’s next policy signal still uncertain and risk appetite improving slightly, some short-term rotation out of safe havens appears likely. Oil prices also weakened, with WTI slipping below $57.3/bbl and Brent around $60.9/bbl, as soft demand signals and broader macro caution weighed on the energy complex.

All price data is from 17.10.2025 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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Base Metals

We execute and clear a significant proportion of the market activity on the London Metal Exchange (LME), the world's largest non-ferrous metals exchange. We also provide access to the CME’s base metal futures and options contracts on its COMEX exchange and copper on the Shanghai International Energy Exchange (INE).

Discover Base Metals

Precious Metals

We provide futures and options brokerage for industrial users of gold, silver, platinum and palladium, as well as for market makers, brokers, funds and traders, covering all hedging and speculative requirements

Discover Precious Metals

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