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Daily Base Metals Report

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Equity indices were firmer today despite global protests and civil unrest in the U.S., as well as rising tensions between the U.S. and China. China’s Caixin manufacturing PMI was expansionary in May which boosted sentiment in commodity markets, it is worth remembering that these are month on month figures. The ECB is expected to inject an additional 500bn euros of asset purchases, this comes as the Eurozone Markit manufacturing PMI for May was 39.4, outlining the struggles for the bloc.

Prices on the LME were firmer today except for ali which failed to gain a footing above $1,550/t and closed at $1,537/t. Nickel prices were well bid today and found strong support at $12,400/t, and protracted buying pressure caused a close on the front foot at $12,626/t.. Zinc prices broke back above resistance at $2,000/t to close at $2,022/t. Copper was also well supported today, breaking through resistance at $5,400/t and closing at $5,484/t. Lead prices closed at $1,679.50/t.

Energy prices were weaker today, with WTI losing more ground than brent as they trade at $34.81/bl and $37.80/bl respectively. Precious metals were bid again today as silver broke resistance at $18/oz to $18.28/oz at the time of writing. Gold is re-testing resistance at $1,740/oz.

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.

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