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Daily Base Metals Report

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Today stocks were well bid as protracted buying pressure after NFPs rose by 2.5 million, lowering the jobless rate to 13.3% from 14.7% in April. Investors are expecting the next round of US economic stimulus to come in June as well as the new stimulus in Europe. Asian stocks were mixed as the Chinese government said that it would take “necessary measures” to protect national companies’ interest in relation to US blacklisting.

Activity on the LME was positive as base metals gained ground. Nickel was well bid, but failed above $13,000/t and closed at $12,991/t. Copper broke through $5,600/t resistance and closed at $5,690/t. Similarly, aluminium was well supported through $1,580/t level, closing at $1,591.5/t. Zinc tested resistance at $2,060/t level before giving back gains and closing on the back foot at $2,052.5/t. Lead pierced support at $1,760/t level before finding its strength and closed the week at $1,775.5/t.

Gold buckled along with silver, trading at $1,680/oz and $17.35/oz respectively at the time of writing. The OPEC+ meeting has been scheduled for Saturday when the group is expected to extend production cuts to prop up the market. WTI and Brent trade at $39.02/bl and $41.89/bl at the time of writing.


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