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Daily Base Metals Report

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US stocks have gained ground posting a two-week high today on the back of newfound support for another round of stimulus checks to Americans. Manufacturing data today showed that activity in America is improving, to 49.6, however, is yet to cross into expansionary territory. Treasuries were little changed, and the dollar retreated. Investors remain cautious regarding the situation between America and China; however, the recent statement by President Trump suggesting that the deal is fully intact injected appetite back into the markets. The UK announced social distancing measures to be reduced from July 4th.

LME metals have been mixed, with aluminium, zinc and lead lower on the day. Copper prices continued to firm breaking above $5,900/t to close at $5,905/t, the cash to 3-month spread has tightened once again to -$13.00/t. Nickel was bid below $12,750/t and closed just off the day’s high at $12,721/t. Aluminium traded lower to the $1,590/t support level as Trump poised to impose a 10% tariff on aluminium from Canada and closed at $1,595/t. Zinc lost the most ground, breaking below the key support level of $2,050/t to close at $2,040/t. Lead was weaker today, closing at $1,747/t. Tin remained range-bound, closing at $16,896/t.

Oil extended its rally today amid Trump assuring of the trade deal with China. At the time of writing, WTI and Brent are at $40.77/bl and $43.17/bl respectively. Gold and silver were stronger, gaining up to $1,767.57/oz and $17.96/oz respectively.


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