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Daily Base Metals Report

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US stocks continued to rise yesterday on positive risk-on sentiment. The US jobless claims fell by more-than-forecast in the week ending on March 20, yielding a fall to the year lows, highlighting a smooth recovery in the labour market as the number of vaccinations continues to grow. On the other hand, the number of COVID-19 cases rose by 89,000 on Wednesday, the most since mid-February. The dollar strengthened, and the 10yr US Treasury yield remained supported above 1.60%. The US personal income and spending data are out to be released today, with the latter forecast to fall by 0.8%.

Metals on the LME came under heavy selling pressure today, with copper the worst affected. Protracted selling pressure caused prices to find support at $8,700/t and close at $8,779.50/t. Tin was next in line as prices struggled above $25,210/t to close $25,200/t. Aluminium managed to find support at $2,230/t and closed at $2,246/t, with the cash to 3-month spread tightened in to -$25.75/t. Nickel was marginally lower on the day, but was supported above $15,950/t and closing at $16,152/t. Lead was stronger, closing at $1,920.50/t.

Oil futures erased the previous day’s gains by the continued blockage in the Suez Canal. WTI and Brent fell down to $58.01/bl and $61.60/bl. Precious metals were also seen lower, with gold and silver falling to $1,725.24/oz and $25.00/oz, respectively.

All price data is from 25.03.2021 as of 17:30

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

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