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Daily Base Metals Report

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US stocks fluctuated, as investors focussed on the virus relief package from Washington. US jobless claims fell faster than forecast in the week ending on August 1st, down to 1.19m, adding confidence to the market sentiment. The US household debt fell in Q2 for the first time in 6 years, as Americans cut down on credit card borrowing. The dollar softened into 92.828, and the 10yr yield on Treasuries fell to 0.5199%. European shares slumped as corporate earnings report continued to disappoint. The pound picked up against the euro and the dollar after the BoE stated that it would not tighten monetary policy soon despite signs of economic rebounding.

Sentiment in the metals market was mixed once again. Copper prices were softer today, testing support at $6,440/t; however, the market held above this level to close at $6,478.5/t. Aluminium prices failed into resistance at $1,780/t, and the market closed at $1,777.5/t, the market has continued to edge lower after the close. Nickel prices stayed above $14,400/t and closed at $14,478/t, the spread tightened slightly into -$45.00/t. Zinc and lead continued to move higher, closing at $2,412/t and $1,966/t respectively.

Oil futures edged closer to 5-month highs, as expectations about tighter supply overshadowed uncertain demand outlook. At the time of writing, WTI and Brent trade at $42.28/bl and $45.47/bl respectively. Gold and silver continued to rally, edging close to $2,061/oz and $28.25/oz respectively.


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