1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read disclaimer

Stocks extended their rally, with Nasdaq climbing closer to its record high, as investor sentiment improved on the back of economic recovery from the pandemic. The dollar dropped to the lowest point since March 12th after the US private payrolls showed a slowdown in job losses. Eurozone businesses suffered another month of contraction of activity in May; however, there are prominent signs of recovery m/m. European countries are now planning to reactivate European travel by mid-June.

Commodities drifted lower today, except for aluminium and zinc, which increased marginally. Zinc lost some ground at the beginning of the trading day but found support at $1,996/t, and closed at $2,021.5/t. Aluminium gained ground, however, resistance at $1,570/t prompted a close at $1,568.5/t. Copper was range-bound, resistance testing at $5,550/t and closed at $5,524.5/t. Nickel drifted lower closer to the end of the day, testing the $12,700/t support level and closing at $12,867/t. After taking out the previous day’s support appetite for prices below $16,000/t, prompted a close at $16,001/t.

Energy prices subsided today as Saudi Arabia has proposed moving the next OPEC+ meeting closer to mid-June, further delaying a deal resolution. The inventories stay elevated as demand remains subdued, capping the potential for higher prices. WTI and Brent traded around $37/bl and $39.6/bl respectively. Gold and silver sold off alongside the dollar, signalling that the economic effects of the pandemic are waning in developed economies. At the time of writing, gold and silver are trading at $1,697.20/oz and $17.67/oz respectively.


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.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning. This week we focus on USDSGD and whether the SDG recent strength is sustainable given the deteriorating global outlook. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.