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Daily Base Metals Report

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Well, where to start…stocks have been relatively muted compared to commodity prices. The S&P 500 and DOW have gained 1.7% each at the time of writing, European indices were more moderated with gains less than 1%. The activity this afternoon was in the energy markets; reports circled that Saudi would be calling an OPEC+ meeting in response to low prices, this was superseded by a tweet from President Trump which suggested that the U.S., Russia, and Saudi Arabia would be cutting production by 10m barrels. Oil prices surged higher gain >30% at one point but trade at $30.55/bl and $25.25/bl for Brent and WTI respectively, marginally of the highs.

Metals prices were on the front foot today; copper prices firmed after one of China's primary smelter's issues a warning of low concentrate supply high sulfuric acid levels which could curtail refined production. Prices closed at $4,897/t with the spread weakening to $17.50 contango. Nickel and zinc prices were firmer, but gains were more moderate, closing at $11,261/t and $1,858/y respectively. Aluminium failed to close back above $1,500/t, closing at $1,491/t; cash to 3 remained under pressure, weakening to $33.40 contango.

Precious metals were bid today, but silver stole the show, gaining 3.53% to $14.45/oz. Gold gained 1.30% and trades at $1,612/oz at the time of writing and ETF demand is still strong.

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.

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