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Daily Base Metals Report

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US stocks pulled back from record highs today on mixed economic data. US initial jobless claims increased by 30,000 in the week ending November 21, for the second time this month. On the other hand, US durable orders expanded at 1.3% m/m, above expectations, supported by increased demand for manufacturing services. The dollar softened out to 92.012 and the 10yr yield on US Treasuries edged lower down to 0.8668%. EU shares edged lower after the banks were told to set aside more money to soak up losses when government pandemic support ends. The UK set out its plans to issue $648bn worth of bonds to help support the economy. The Fed is releasing Minutes tonight.

Metals prices were mixed, aluminium was softer, and the market broke support at $1,980/t level and closed at $1,970/t. Copper was supported through $7,260/t, causing prices to recover and close at $7,300/t. Zinc prices oscillated between positive and negative territory but closed higher on the day at $2,754.50/t. Lead was weaker, closing at $2,030.50/t; cash to 3-month spread tightened further into -$13.35/t. Nickel was supported above support at $15,950/t, but closed lower on the day close at $16,058/t. Tin was lower on the day, closing at $18,736/t.

With OPEC+ now days from the meeting, the oil futures continue to surge, with WTI and Brent edging up to $45.53/bl and $48.33/bl. Precious metals prices were mixed today, and, at the time of writing, gold and silver trade at $1,810.90/oz and $23.38/oz respectively.


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