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Daily Base Metals Report

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Stocks declined as disappointing corporate earnings results came to light, and growth in coronavirus cases continued to threaten global recovery. The Fed has extended most of its emergency lending programme until the end of 2020. US consumer confidence retreated to 92.6 in July, from 98.3 in June, on the back of fears of the recent increase of coronavirus cases. At the same time, the US homeownership rate jumped to the highest rate since 2008, indicating a rebound in the housing market.

LME metals have been mixed, with nickel and tin lower on the day. Aluminium prices continued to firm breaking above $1,720/t to close at $1,724/t, the cash to 3-month spread has tightened once again to -$39.00/t. Copper was bid above $6,400/t and closed just off the day’s high at $6,477/t. Zinc traded lower to the $2,215/t support level before picking up the pace and closed on the front foot $2,246.50/t. Lead was mostly range-bound and tested the resistance level at $1,870/t before closing at $1,868/t. Nickel and tin were weaker today, closing at $13,660/t and $17,993/t respectively.

Oil futures weakened today on the back of disappointing market data, with WTI and Brent trading at $41.17/bl and $43.38/bl respectively. Gold prices were firmer, while silver gave back some of its recent gains. At the time of writing, gold and silver stand at $1,953.58/oz and $24.55/oz.


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