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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.


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