We saw a return to risk appetite today causing stock indices to rally. The S&P 500 & Dow Jones trade back above the 3000 and 25,000 respectively, at the time of writing. Economic data is historically very weak but some investors are starting to believe the worst is over as lockdown restrictions continue to be eased.
LME prices all closed higher except zinc. Copper prices continued to firm breaking above $5,350/t at $5,362/t, however, the cash to 3-month spread has weakened once again in $34.75/t contango. Lead was bid below $1,650/t and closed just off the day’s highs at $1,686.50/t. Nickel prices started to claw back some of the previous day’s trading losses closing at $12,341/t. Aluminium closed at $1,519.20/t just off the highs of the day.
Precious metals have sold off today as risk appetite return. Gold remains above $1,700/oz at $1,712.30/oz. Silver trades at $17.12/oz. Energy prices failed to hold onto the days with Brent and WTI trade at $35.64/bl and $33.77/bl.