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Daily Base Metals Report

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US stocks climbed today on the back of the biggest increase in consumer confidence since 2011. The Nasdaq has posted a 36% increase this quarter, breaking the record highs since the beginning of June. The rise of new coronavirus cases adds to the downside risks, and the Fed has begun its preparations for the second wave of infections, laying out the key features of the lending programme. The yield on 10Y Treasuries increased and the dollar declined. China passed the key national security legislation for Hong Kong, further damaging its reputation with the US and the UK.

LME metals were mixed today, and aluminium and copper were well supported. Aluminium prices tested key resistance at $1,620/t but closed below at $1,619.5/t. Copper prices were firmer today, closing at $6,015/t. The cash to 3-month spread softened into -$9.00/t. Lead prices declined the most today, closing below the key support level of $1,780/t at $1,774/t. Nickel prices struggled to gain footing on the upside, closing just above the support level of $12,800/t at $12,805/t. Tin was marginally weaker, closing at $16,722/t.

Gold climbed above $1,780/oz for the first time since December 2012, and silver gained 1.95% today. At the time of writing, gold and silver trade at $1,783.68/oz and $18.21/oz respectively. Oil futures declined as expectations of muted demand persisted today, driving WTI and Brent down to $39.73/bl and $41.22/bl respectively.

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