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Daily Base Metals Report

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Stock markets climbed today on the back of continued support from central banks, led by the Fed corporate bond-buying programme. The yield for 10-year Treasuries gained to 0.7462%, as US equities jumped after data showed retail sales surged by 17.7% m/m, the highest on record. In his semi-annual policy report to Congress, Powell stated the US economy might be bottoming out; however, the economy has a long way to go to full recovery. The Trump administration is preparing a $1bn of infrastructure proposal as part of its push to rev up the US economy. In the UK, scientists identified the first drug proven to improve survival in severely ill COVID-19 patients.

LME metal prices were on the front foot today due to improved economic sentiment. Aluminium prices gained to test the resistance level at $1,610/t but closed below at $1,597.5/t. Nickel gained the most ground, closing above the key resistance level of $13,000/t at $13,024/t. Copper and zinc consolidated, however, lost some of their strength in the afternoon, closing at $5,728.5/t and $1,995.5/t respectively. Copper cash to 3m spread softened further to -$30.00/t contango. Tin remained range-bound, closing at $16,920/t.

Oil prices improved today on the back of hopes of higher demand in conjunction with lower production levels. At the time of writing, WTI and Brent trade at $37.23/bl and $40.05/bl respectively. Gold and silver were broadly unchanged today despite positive economic announcements coming from the US, trading at $1,725.04/oz and $17.41/oz respectively.


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