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Daily Base Metals Report

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US stocks extended their losses as record spikes in coronavirus-related cases appear across some states, halting the process of reopening the American economy. Consumer spending surged by most on record in May, up to 8.2%, as a result of increased spending of stimulus checks. Treasuries and the dollar strengthened. The euro was little changed, despite ECB’s dovish stance mentioned in the minutes of the policy meeting, driven by negative global sentiment.

Metals on the LME have traded higher today, apart from zinc, as some risk appetite returned to the markets. Nickel gained the most ground, testing the level at $12,700/t but closing below at $12,684/t. Next in line was aluminium, that gained 2.01% on the day, closing just above the key resistance level of $1,600/t at $1,601.5/t. Cash to 3-month spread softened into $16.50/t contango. Copper briefly topped $6,000/t; however, resistance at that level triggered a close at $5,957/t. Lead prices remained unchanged on the day, closing at $1,786/t. Zinc was under pressure, closing below 2,050/t at $2,038.5/t. Tin tested the resistance at $16,900/t however closed below at $16,815/t.

Oil lost some ground as Russia’s key crude exports plunged in May, with WTI and Brent edging down to $38.09/bl and $40.61/bl respectively. Gold headed for a third weekly advance, up to $1,766.08/oz. Silver was marginally weaker, trading at $17.79/oz at the time of writing.

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