The US record-breaking rally continued today on the back of the positive economic sentiment. The US weekly jobless claims gradually declined but remained above 1m, and the economy contracted by 31.7% q/q in Q2, less than expected. The dollar advanced, and the US yield on 10yr Treasuries picked up to 0.7309% after Powell remained hugely dovish in today’s meeting.
Metals prices were well bid today as risk appetite took hold of the market. Copper prices edged higher today, as Codelco stated that their mines operated at normal levels after rain disruption. The metal closed at $6,621/t. Aluminium was mostly range-bound, and closed marginally higher on the day at $1,781/t; the cash to 3-months spread tightened into -$37.50/t backwardation. Nickel steadied, and support at $15,150/t triggered a close at $15,191/t. Tin gained the most ground, testing the resistance at $17,855/t before closing at $17,810/t. Zinc and lead prices were both higher today, testing the $2,499/t and $1,990/t, and closing at $2,485.50/t and $1,982/t respectively.
Oil futures declined as the hurricane crossed over land in the Gulf of Mexico region and has seen subsided. At the time of writing, WTI and Brent trade at $43.15/bl and $45.26/bl. Gold fluctuated after Powell’s statement but has traded lower to $1,923.44/oz. Silver is trading at $27.07/oz.