President Trump has put together a plan to reopen the U.S. economy, prompting a risk on day. The guidelines to states outline how they could relax isolation measures. Chinese data was weak prompting the government to promise stronger stimulus to help the economy recovery. We expect the recovery to be U-shaped but the stimulus could support commodities. There was also optimism from a medical standpoint as researchers get closer to a cure.
Prices on the LME were supported today as risk appetite prompted the market. Copper prices traded up to $5,237/t but resistance at this level triggered a close at $5,211/t. Cash to 3s tightened today into -$17/t. Nickel prices also strengthened today, prices closed near the day’s high at $12,042/t. Zinc was supported again today but found resistance at $1,970/t prompting a close at $1,958/t; the spread tightened moderately once again but remains in contango. Lead and Ali were weaker today.
The risk appetite was a significant headwind to gold prices, the market trades at $1,688.5/oz, silver also sold off today to $15.16/oz. Energy prices were mixed today as the Brent/WTI spread continues to widen. Brent has gained 2.8% today and trades at $28.61/bl with WTI at $18.38/oz.